The months of June and July are crucial for the Pakistani automotive industry. The government is introducing the new budget and the new automotive development policy (ADP) for the next five years. Things are shaking up in the industry, and everybody’s putting forward their demands and suggestions. Recently, a delegation of the industry has demanded concessions in sales tax, Federal Excise Duty, Customs Duty, and Additional Customs Duty on car import. Now, the All Pakistan Motor Dealers Association (APDMA) wants to have a word with the Ministry of Finance. Let’s hear it.
The Chairman of the All Pakistan Motor Dealers Association (APDMA), H. M. Shehzad, has sent a letter to the Ministry of Finance (MoF). The letter was addressed to the Special Assistant to Prime Minister (SAPM) on Finance, Dr Abdul Hafeez Shaikh.
The Problems
H.M. Shehzad started the letter by highlighting how the local automakers have been exploiting the market. He said that the existing have had the opportunity to reap the benefits of restrictions on the import of used vehicles, and now the new entrants have joined the club. Now, all automakers are increasing car prices and defrauding the consumers with the ON MONEY practice.
The letter highlighted that the automakers have failed to optimize their manufacturing capacities. They have been importing the vehicles for sale purposes, resulting in delivery delays and the on-money culture.
The Chairman APDMA appreciated the government’s initiative of drawing Quality Standards for local cars and complained that the carmakers did nothing but cry about it.
The Solution
The letter went on to propose a solution for the above-mentioned malpractices of local assemblers. Since all this mess is because there’s no competition in the market, the Chairman APDMA proposed that commercial import of used cars should be allowed. He requested that the auto policy be extended for low cost and economy car import for middle-class consumers.
Here are the mic-drop words of the letter:
“Sir, the government has been listening to the assemblers for the last 30 years who have given back nothing to the countrymen except high prices and low quality and safety standards. Why not bring some tabdeely from the past corrupt practices and give the common man a chance?”
