THE new Automotive Development Policy 2016 is starting to bear fruit, and the country will be better off for it.

For decades now, the auto sector has been the exclusive preserve of three companies, and consumers have lacked choice when venturing into the market for locally assembled models.

Finally, news is starting to come in that the incentives given in the auto policy to attract new investors into the field have yielded results. If things go smoothly, by 2020 there could be up to nine more companies in the market, vastly expanding the choices available to consumers, unleashing genuine price competition, and taking a huge leap towards eliminating the menace of premium charges for timely delivery. The policy will also do much to discourage imports of used cars, which are an unnecessary cost on our reserves, as well as the maintenance costs they exact from the owners. All things considered, ramping up indigenous assembly is clearly the superior option, and that was the goal the auto policy setforitselflastyear.Thisyearithas started bearingfruit.

There is another view to be considered here. For a long time, we have been being told that nobody is interested in investing in Pakistan due to the political and security situation. This argument is often given when people ask questions about the costs of the Chinese investment being aggressively solicited. The auto policy makes clear that given the right policy incentives, there are indeed foreign investors keen to come to Pakistan and compete in a promising landscape that offers sound opportunities for growth.

With similar policy wherewithal, the same can be done in so many other sectors, such as oil marketing and cement to list only two examples. It is vital to understand that Pakistan`s economic fortunes can be unlocked with the application of mind, and sound policymaking, instead of a constant search for a big brother, or saviour, who will come and solve all problems in one go. The auto sector does not touch the lives of the poorest amongst us, but if the competition that is unleashed by the new policy can generate activity in the smaller engine class vehicles, it will certainly be of benefit to the middle and lower middle classes once assembly gets under way in earnest. That alone will be its vindication in the years to come.