Figures show that sales are down by 24 per cent while production has also gone down compared with previous fiscal year
KARACHI: Pakistan’s automotive industry has revolutionised the life of the people. The sector is a significant contributor to the national exchequer and has created hitherto unknown employment opportunities. It has also strengthened many allied industries, which include automobile parts, tyre manufacturers, workshops, shops, etc. It has also been instrumental in creating educational opportunities for aspiring engineers.
It is disappointing to note then that the automotive sector is suffering at the hands of policymakers, who have repeatedly taken decisions that have adversely affected local auto-makers. Figures show that sales are down by 24 per cent while production has also gone down compared with the previous fiscal year (2011-12). While there are many reasons for this sharp decline, it is the illegal import of used cars from foreign markets under the guise of certain schemes that have done the sector in. Thanks to these schemes, the influential used-car importers’ lobby is minting money, while the local industry suffers from decreased sales and profit margins. At this rate, the local automotive sector will downsize to cut costs and eventually shut down, while the consumers will go back to settling for used and obsolete imported vehicles that come with no guarantees or after-sales services.
Alamgir Khan
Published in The Express Tribune, March 14th, 2014.
Like Opinion & Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.
