To save the economy from the loss of billions of rupees, the automobile industry made a big demand from the Prime Minister and the Finance Minister

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To save the economy from the loss of billions of rupees, the automobile industry made a big demand from the Prime Minister and the Finance Minister
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To save the economy from the loss of billions of rupees, the automobile industry made a big demand from the Prime Minister and the Finance Minister

ISLAMABAD (Daily Pakistan Online) The domestic vehicle manufacturing industry in Pakistan has submitted proposals to the federal government before the budget and demanded that a complete ban be imposed on the import of old vehicles imported from abroad, especially from Japan. It should be done so that billions of rupees can be saved from the black market of imported vehicles to Pakistan’s automobile industry and the country’s economy, and the loss to the country’s revenue can be remedied. In the new budget, foreign vehicles with a mileage of 2000 km should also be banned. The representatives of the car manufacturing industry in the country also demand that the facility of bringing imported vehicles with Pakistanis returning from abroad for permanent residence should be reviewed because by using this facility improperly, the country’s treasury and automobiles will be stolen. The industry is being irreparably damaged. The old car importing mafia buys passports from overseas Pakistanis for $100, which are used to bring large quantities of cars into Pakistan. In this regard, black sheep from within the system support this mafia. Prime Minister Shahbaz Sharif and Finance Minister Muhammad Aurangzeb need to focus on the serious problems facing the automobile industry, which employs millions of people.

These representatives are of the view that the manufacturing base of Pakistani economy is weak. He said that 65 to 71 percent of global brands are currently being assembled within Pakistan, which has been hit hard by the government’s decision to allow imports of used vehicles in the first quarter of 2023 and locally manufactured vehicles. The demand has decreased. In the first 6 months of this year, the import of vehicles has increased by 684 percent. In July to December 2023, 16 thousand 500 vehicles were imported from abroad. According to the available data, 2100 used vehicles were imported into Pakistan in the financial year 2022-23.

According to the Chairman of Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) Abdul Rahman Aziz, this import was due to abolition of regulatory duty in the federal budget 2023-24, under which used vehicles up to 1800 cc. The regulatory duty was abolished from According to him, the loss caused by this government decision is estimated at 36 billion rupees, while the automotive industry has reached the verge of closure. As policy makers in China and India have estimated the damage to their national economies, we need to protect our local auto industry in the same way. He said that more than 10 lakh people are earning their livelihood by doing labor in this sector. The local auto manufacturing industry like others is already under pressure due to economic conditions. Due to the payment of imported vehicles in foreign currency, the burden on Pakistan’s foreign reserves also increases.
65 to 71 percent of spare parts are manufactured by local companies but about 40 percent of spare parts have to be imported from the respective country. Former Governor State Bank Dr. Ishrat Hussain criticized this policy and said that instead of imposing import restrictions on the industry, increasing duties on ‘CKD’ imports is a good policy.

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