Import of old cars, poison for the economy

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Import of old cars, poison for the economy
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Import of old cars, poison for the economy

The budget is coming to the country. On the other hand, a loan agreement with the IMF is also being discussed. The terms of which are also coming out slowly.

One thing is in front of everyone that Pakistan has to move towards self-reliance. Exports are to be increased and imports are to be reduced. The importation of everything that we make or can make ourselves is to be discouraged. The import of what is made in Pakistan is a poison for the economy of Pakistan. No one can deny this principle.

Cars are made in Pakistan. Pakistan is among the 48 countries in the world where there are automobile factories. There are currently twelve companies in Pakistan. Some of them are manufacturing vehicles, some are just assembling them under a special scheme. But this concession is also available to them for a certain period, after which they also have to take steps to manufacture the vehicles in Pakistan.

The question must be which company is making how many car parts in Pakistan and what percentage of parts are being imported into Pakistan.

When this question is asked to the vehicle manufacturing companies, their difficulties must also be brought forward. The reasons due to which the rest of the parts are not being made in Pakistan are to remove these difficulties. For example, due to non-existence of steel mills, car steel has to be imported. Similarly, we do not manufacture glass and therefore glass parts are also sourced from outside. But it is also a fact that sixty percent of some vehicles and some even more parts are being made in Pakistan.

On the one hand, car manufacturing plants are providing employment in Pakistan, on the other hand, there are more than fifty car parts manufacturing plants in the country. More than eight lakh people are employed in the auto industry in Pakistan. The auto industry in Pakistan has been facing various challenges for the past two years.

There are some challenges that the auto industry has to deal with on its own and the government cannot help them in any way. I am in favor that the government of Pakistan should strictly monitor the automobile industry. They should be strictly regulated. They should be forced to make hundred percent of these vehicle parts in Pakistan. What can be made in Pakistan should be made in Pakistan. The quality of vehicles should be as per international standards. Best quality and best technology is also the right of consumers in Pakistan.

I understand that now twelve types of vehicles are being manufactured in Pakistan. Therefore, the export of vehicles in Pakistan should be stopped. When we are making vehicles, indigenous vehicles should be our first priority. I am also not in favor of importing new vehicles. But surprisingly, import of old vehicles is also allowed in Pakistan.

It is like we make new ACs and allow us to import old ACs from all over the world. This does not happen anywhere in the world. This import of old vehicles is also a form of black market in Pakistan. Thirty percent of old vehicles were sold in Pakistan last year. Thirty percent of the Pakistan market has been acquired by old vehicles.

Which is not a positive situation for the Pakistani economy. It has caused a lot of damage to Pakistan. There is no formal policy to import old vehicles in Pakistan. Overseas Pakistanis are allowed to bring an old vehicle back to Pakistan. This is also known as gift scheme. Otherwise, there is no formal policy to stop the import of old vehicles. No one can sit in Pakistan and import old gari. What’s the game now?

People who work for small jobs in overseas Pakistanis, especially in Arab countries. They do small jobs. A mafia takes their passport from them. At present, the rate of Pakistan is from fifty thousand to one lakh rupees. The vehicle is imported in their name by taking their passports. They don’t even know which vehicle is being imported in their name. If they are poor, they take the money and go to the side.

After that, the money from Pakistan goes abroad through handi and referral. The one who has a passport is not able to import the vehicle. Only his name and passport are used. That is why the money goes through the black market of Pakistan. Last year, 30,000 old vehicles came from Japan. Are there thirty thousand Pakistanis in Japan and have they brought old vehicles to Pakistan? Everything is a lie. In fact, in the last one year, the rate of the Japanese currency, the yen, has decreased.

Hence old cars have become cheaper there. The Pakistani mafia has taken full advantage of the reduction in the prices of old cars due to currency depreciation. In addition to this, the tax rate of old cars has also been reduced in Sahaga Pakistan. The whole game started with an SRO ending.

And thus the importers of old vehicles in the country were silvered. And difficulties were created for the local car manufacturing factories. Now the situation has become that the tax on the vehicle manufactured in Pakistan is high and the tax on the imported vehicle is low. Where does this happen? We are discouraging domestically manufactured vehicles and encouraging imported old vehicles.

What is this policy that we want to please overseas Pakistanis only by allowing them to bring old vehicles. They can encourage our local industry by bringing the same foreign exchange to Pakistan. Local car manufacturers are only demanding that the minimum tax rate be equalised. The tax exemption given to old vehicles is incomprehensible. But I think import of old car is a fraud. There is a black market.

Our reference is keeping the handi market alive. So this scheme should be closed. This policy should end. When vehicles are made in Pakistan, everyone should be made to use vehicles made in Pakistan. No one should be allowed to use an imported vehicle. The countries in which the vehicles are being made. That’s the policy there.

Without it, the local car industry cannot survive. Importing old cars does not create any jobs. Rather, it increases unemployment.

Therefore, the government of Pakistan should now close the way of this bootlegging. We should make a strict policy for our local industry. They should be obliged to make 100% vehicles. One should sit with them and work on it. But 100% imported vehicle is not a policy. We should consider exporting vehicles. Africa can be our market. Where cars are not made, our cars should go. This is the interest of Pakistan.

Import of old cars, poison for the economy