The auto vendors have asked the government to revisit import of used cars policies during the upcoming budget as the import of used cars has caused over Rs. 50 billion in losses to the country’s economy during the first eight months of the current fiscal year.
According to data, the used vehicles soared to 25,000 units, marking a staggering 641 percent increase during the first eight months of the current fiscal year, compared to last year’s 3,386 units imported.
The representatives of the local auto industry told ProPakistani that the local automobile sector is suffering due to the government’s decision to allow the import of used and unregistered vehicles.
They argued that the government consistently fails to safeguard local industries, despite these industries benefiting from billions of dollars in foreign investments and providing employment to over 5 million workers.
Industry representatives revealed that the import of used cars has caused over Rs. 50 billion in losses to the local industry and econ
omy during the first eight months of the fiscal year 2023-24 alone.
Initially intended for overseas Pakistanis, the allowance for used car imports has been exploited through corrupt practices, with vehicles imported in their names for profit-making ventures, claims the industry.
The document highlights that favorable taxation and duty policies towards used car imports have also played a part in crippling the local assembling industry, leading to reduced demand for domestically assembled automobiles.
The automobile manufacturers are also concerned that grey channel transactions for used car imports pose a significant threat compared to legal transactions for local manufacturers, resulting in potential revenue losses for the economy.
Furthermore, despite an unwavering resolve to manufacture a substantial portion of car parts locally, unfavorable policies have led to inefficient production facilities, job losses, and a lack of motivation to boost the local industry.
According to industry suggestions, the go
vernment should immediately discourage or regulate used car imports to support local industry growth and competitiveness. Besides, policymakers should engage in creating mutually beneficial policies that foster industry growth and job creation.
Furthermore, relevant authorities need to implement consistent policies that enable the local industry to thrive and contribute positively to the economy.
Pakistani automobile manufacturers asked the government to protect millions of families from unemployment, it said that even with 13 local manufacturers and assemblers and thousands of used import cars, the segment is still out of reach of the common man due to skyrocketing taxes and duties.
A consistent and favorable policy to encourage the local auto industry enables it to become more productive towards boosting the industry. Compared to the local manufacturing industry, the import of used cars does not employ many people.
The import process involves a few people, often from the same family, with one sitting in
Japan and the other sitting in any Pakistani city engaged in a black market business that only seeks to serve the luxury lifestyle. On the other hand, local car manufacturers are a valuable economic asset of our country.
Source: Pro Pakistani