KARACHI: Local car assemblers have recommended maintaining restriction on import of used cars, which are more than three years old for the next budget. Officials from the industry on Tuesday said that suggestions for changes in the policy regarding the local auto industry for the coming budget have been sent to the government.
They suggested that a soft policy for used cars would increase pressure on the local auto industry. They further asked not to impose heavy duty on spare parts. Localisation in auto industry, transfer of technology and expansion would affect new investment and the government would have to suffer the reduction in revenue and unemployment issues. Car assemblers have urged the government to create new employment opportunities and devise a sound framework for development of auto industry.
According to local assemblers, economic conditions have improved in comparison to 2007- 08 and 2008-09 but inflation and devaluation of the rupee is increasing the cost of manufacturing. On the other hand the power crisis is disturbing supply of spare parts and delaying car delivery to end consumers.