Used cars import to put growth in reverse gear
By our correspondent
KARACHI: Chairman, Engineering Development Board, Waseem Haqqie in his visit to Pak Suzuki Motor Company (PSMC) on Thursday appreciated the efforts made by Pak Suzuki in the motorization and the industrial development of Pakistan through localization.
He welcomed the future captive investments of more than Rs4 billion being made by the Company in the expansion of facilities to produce more than 110,000 vehicles in 2006.
He said that this further increase in production capacity by Pak Suzuki will bring relief to the customers who will now be able to get the delivery of most popular brands of Suzuki vehicles at factory price and in much reduced waiting time.
Managing Director, PSMC Ayukawa expressed serious concern on the import of used vehicles as per last year’s Trade Policy (2005-2006) as it is causing significant damage to the auto manufacturing and vending industry.
With the liberalized import of used cars the wheel of economic and technological growth have started to move backwards forcing the manufacturers and vendors to hold their planned investments of over Rs80 billion by 2010 in capacity expansion projects.
As a chain reaction, more than 200,000 people will loose their jobs.
The contributions to the GDP, investment and government revenues will be significantly reduced.
Moreover, car financing and the financial sector would be adversely affected.
Haqqie responding to the concerns shown by Ayukawa on behalf of auto industry, assured that the Government of Pakistan wants the local automotive manufacturing and vending industry to grow further and attaches a great importance to their active contribution towards in the economy of Pakistan and as a major source of employment.
He stated that he would endeavour to solve the matter of used cars import on urgent basis.
He assured that the government by any means is with the local manufacturers and vendors.
He asked the industry to continue with their expansion plans to be able to produce 500,000 vehicles by the year 2010, on their part the Government will ensure that the locally manufactured vehicles continue to be sold not only in domestic market, but are also exported.