‘Imported cars a cancer for local industry’

PAC directs commerce ministry to draft a new auto policy within 15 days.


August 23, 2012

ISLAMABAD: The automobile manufactures on Thursday told the subcommittee of the Public Accounts Committee (PAC) that the import of reconditioned vehicles was a cancer for the automotive industry.

The PAC subcommittee held a meeting under the chairmanship of Commerce Secretary Hamid Yar Hiraj to discuss and prepare a policy for reduction of prices. Hiraj said that the auto manufactures earned a premium on every new vehicle, which was totally illegal and unjustified.

The committee also criticised that in the past the policies were prepared for individuals not for the nation, an unfortunate situation. The committee directed the Ministry of Commerce to prepare recommendations for a new automobile policy, which should be acceptable to every stakeholder, within 15 days.

The secretary told the committee that the duty structure for the new vehicles should be revised because the customs tax regime on imported reconditioned vehicles was affordable for consumers rather than the policy on new imports.

Published in The Express Tribune, August 24th, 2012.

 

COMMENTS (6)

Junaid | 9 years ago | Reply

The country’s largest automobile assembler profits grew by 392% to Rs1.37 billion in the first six months of 2012 against Rs279 million reported in the same period last year, according to a notice sent to the Karachi Stock Exchange on Friday.

http://tribune.com.pk/story/425792/corporate-results-suzuki-profits-speed-up-five-times/

SURB | 9 years ago | Reply We must not let that happen until our Pakistani auto industry gets an edge over the foreign (suzuki,toyota,honda) car makers in terms of sale.So far there is nothing like this happening in the near future,so the import of good products must go on to keep the quality and price in check. The car market in Pakistan is dominated by Suzuki,toyota and Honda.We must allow/facilitate the Indian car manufacturers to compete with their products manufactured in Pakistan.This will start a competition good for the Pakistani customers. The government must instead facilitate more automobile manufacturers to start their local manufacturing right here in Pakistan with emphasis on transfer of technology and training.The must end this monopoly by Japanese manufacturers.
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