Nat’l council to develop automobile industry
The government has formed a national council to develop the automobile industry which, in conjunction with a policy framed recently, is expected to facilitate the sector's expansion and cut Bangladesh's over-reliance on imported vehicles.
The industries ministry formulated an "Automobile Industry Development Policy" in August 2021 to encourage local and foreign investment in assembling and manufacturing motor vehicles and their components.
The policy aims to provide investors the opportunity to import capital machinery and equipment to make cars at zero duty to encourage establishment of automobile related factories.
Headed by the industries minister, the council will coordinate various activities related to sectoral development and automobile development policies.
It will also monitor the impact of the policy on other sectors of the economy, according to a notification issued by the industries ministry last week. The panel will sit at least twice a year.
"These initiatives will take the automobile sector forward. We will be able to discuss problems, challenges and prospects of the sector in the council," said Hafizur Rahman Khan, the immediate past president of the Bangladesh Automobiles Assemblers and Manufacturers Association.
"This is a positive step and we are really happy to see the development. Now, we want the council to start working as early as possible," he said.
The move comes at a time when demand for cars is increasing thanks to Bangladesh's steady economic growth that has fuelled the growth of the middle class.
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