Govt urged to discourage import of used cars

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ISLAMABAD: Pakistan Automotive Manufacturers’ Association (PAMA) and Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) have warned the government that any move in favour of the import of used cars would not only discourage foreign investment in the local auto industry but would also result in loss of thousands of jobs, besides outflow of precious foreign exchange reserves.

In a statement issued on Tuesday, PAMA appreciated the government for issuing a Statutory Regulatory Order (SRO) to curb the misuse of used cars, which was causing depletion of foreign exchange from the economy.

However, it also expressed concerns that the commercial importers were trying to pressurise the government by proposing various import schemes which will “only result in damaging the local auto industry and the country’s economy”.

The automotive manufacturers urged Prime Minister Imran Khan not to consider any such proposal, as it would result in massive de-industrialization and unemployment.

“Well thought-out conditions stipulated in the SRO will only facilitate genuine overseas Pakistanis, discourage misuse of policy by unscrupulous commercial importers, ensure proper documentation of the entire transaction and help Pakistan comply with its international commitments towards Financial Action Task Force (FATF) and Anti Money Laundering (AML) laws.”

They said only recently, the government had provided incentives under Auto Development Policy to attract global original equipment manufacturers (OEMs) in order to increase local automotive output and stimulate the economy in line with the vision of “Make in Pakistan”.

“This policy has attracted several new entrants who have invested over $2 billion cumulatively and are about to start their volume production,” they noted. “Liberalising the import of used vehicles will go against the spirit of this policy and discourage global OEMs from further investments in Pakistan.”

They further said that local manufacturing, combined with hundreds of parts’ producers, dealers and the industry’s four million employees, generate far more revenues, as compared to concessionary duties earned from import of used vehicles.

Approving the import of used cars would send a wrong message to all existing and new investors who have invested in Pakistan, trusting that the government would ensure long term enabling policy environment. “Please do not compromise that trust for short term gains.”

10 COMMENTS

  1. What about the prices of local car manufacturers.? Does this PAMA has the guts to justify the price they are charging customers. Does Suzuki Mehran justify 900,000? Does Honda Civic Justify 3,599,000? Does Toyota Corolla Altis Grande Justify 3,500,000? These manufacturers are looting Pakistani for more than a decade now. Control the price and improve the low standards offered in high standard price.

    • They all are the bloody mafia, the local car assemblers. I mean why they want to snatch the right of consumers preference. Allow a consumer to choose what ever car they want to buy. Despite of being old , why consumer still prefer the old japenese cars, because of it’s durability and reliability along with extra and far more additional features that lacks in locally assembled cars. And they says that foriegn exchange is being affected by means of used car import, can somebody ask them are they the manufacturers ? They themselves import parts over the process of import and pay huge amount of foriegn reserves that affects the balance of payment too.

  2. Avatar WAJID Ali Malik ( CHEMICAL ENGINEER) MANUFACTURER OF NICKEL AND ZINC SALTS,USED IN PHOSPHATING PROCESS OF METAL PARTS OF VEHICALS

    If some one is preffering used imported vehicle without any warranty,of spare part because of more durability and comfort available in low price,then this s not any wise to stop import of used cars .only and only if government could impose freign vehicle makers to develop complete facility of technology transfer and not to import any part from their mother land,that means metlergy and technology transfer in Pakistan

  3. Since local car assemblers refuse to concentrate on assembling quality cars so they are paving the way for government to ban imorted cars with lame justifications. These local car assemblers must have minted trillions of ruppees from helpless consumers on charging extravagant money by giving kickbacks to concerned ministers and authorities to toughen the import of used cars from abroad in the past. So, the costumer was left with no choice but to buy low quality, uncomfartable cars on outrageous prices.
    If this government wants to make a difference for the masses in this regard then it should make it easier for then imported cars to be available in the market. This single act will push the local car manufactrurers to built quility cars; which might put our local assembled cars in international maket, and we would be exporting our vehilcles to other countries. Imagine the revenue it will generate for the country.

  4. Govt. Should not restrict used cars unless the local brands are not Ready to slash prices by 50%. Both parties are exploiting the consumers.

  5. I want to deploy the consideration to all readers of this article that these so call only local assemblers are foreign originated companies and are never in Pakistan’s interest…
    Initially they shifted our foreign exchange in terms of CKD import then clear their cars at import stage at lower rate attracting manufacturing concerns..
    Then they earn heavy margins from consumers due to imperfect competition enable to create cartels among all assemblers…
    Afterword they take profit from black marketing tactics enabling own money by making less units than available demand…
    Finally they withdraw their profit in shape of dollars from our economy another shock to our economy…
    After all this happening PAMA louder their voice against used car import to maintain their cartel…
    They claimed used car importers send foreign exchange which are arranged them self they are also send billions of dollars yearly in shape of purchasing CKD and profits to parents company owned by NON nationalists…
    Means they are charging us high and provide us low..
    Or we pay high cost to economy by importing such CKD on other hand to import used cars…
    Finally we are now in crisis situation so we may use low cost and Maintenance car to overcome our need …
    In my view point used car import may allow to enable perfect competitive environment into the country in the best interest of public Not in the interest of foreign base companies….
    It also may possible that all people are not agree with my ideas but these are the ground realities faced by our economy…
    Thanks And Regards…
    Patriot Pakistani…

  6. LOCALLY PRIDUCTION IS TOTALLY NON
    ISO CERTIFIED CAR MANUFACTURING
    PLANTS SO THERE IS NO SAFETY
    DONT HONDA CITY . TOYOTA LOCALLY ASSEMBLED CAR

  7. LOCALLY PRIDUCTION IS TOTALLY NON
    ISO CERTIFIED CAR MANUFACTURING
    PLANTS SO THERE IS NO SAFETY
    DONT buy LOCALLY ASSEMBLED CAR

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