Automobile prices to fall after 2007: minister
LAHORE (December 24 2005): Minister of State for Privatisation and Investment Division, Umar Ahmed Ghuman has said that prices of automobiles in Pakistan will show a substantial decline after the year 2007.
He was addressing at the opening of 3-day automobiles international exhibition titled 'Auto-tech Pakistan 2005' at Fortress Stadium here on Friday. Chief Executive Noble Standard, the firm organising the exhibition, Ahmed Masood was also present.
He said the cut in prices will be due to sincere efforts of the government to bring them within the reach of common man by providing competitive environment and encouraging maximum investment in this sector, said the minister.
Foreign investment in automobile sector of Pakistan has witnessed a rapid increase in recent years and number of manufacturers are ready to set up plants in the country which would ultimately bring the prices of automobiles at par with other countries of the world, he said.
'Automobile Mafia' in Pakistan is responsible for not allowing reduction in the prices, the minister said adding the government would remove reasons behind the higher prices of cars to enable its citizens to get the vehicles, he added.
At present cars are being provided on 12-14 percent financing in the country while the government is negotiating with a German firm to provide the vehicles on lust 4 percent financing, said the minister.
He, however, made it clear that the duty on imported cars will not be reduced as the government wants to protect the domestic industry and increase domestic production of the vehicles.
http://www.dawn.com/2005/12/24/ebr4.htm