The Senate was apprised on Tuesday of the reasons behind the higher prices of cars and motorcycles in Pakistan compared to neighbouring countries. Minister of State for Law and Justice, Shahadat Awan, cited various factors contributing to the overall pricing of automobiles in the market, including the import of 60% of parts, currency fluctuations, expensive freight costs, high business expenses, heavy taxes, and the impact of import policies.
The minister highlighted that despite challenges, Pakistan has made significant strides in local manufacturing, with 95% of tractors and motorcycles now being produced domestically. Moreover, the country has begun exporting motorcycles.
Comparing prices with countries like India, the minister noted that India enjoys lower prices due to its larger scale economy and lower taxes, making their automotive market more competitive.
He explained that instead of implementing a price fixation policy, the government aims to encourage industrial growth by fostering competition among local auto manufacturers.
Published in The Express Tribune, July 26th, 2023.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
1731570357-0/elon-musk-(1)1731570357-0-270x192.webp "republicans accused of protecting elon musk")
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ