ZAHEER ABBASI
ISLAMABAD (November 23 2007): Despite incentives by the government to the local auto industry, the imports in transport sector recorded a high growth of 76.68 percent during the last four months (July-October) of 2007-08 to $968.621 million against $548.238 million of the same period of last year.
This growth, particularly, pertaining to road sector is led by imports of equipment in CKD/SKD conditions, other transport equipment and huge import of motorbikes is something the government did not want in the five-year auto sector development plan that had offered the industry tariff and other incentives to meet the future need.
Similarly, Shaukat Aziz led government had also offered freight subsidy to motorcycle industry on exports mainly because the country had more production than the requirement. But the data released by the Federal Bureau of Statistics Thursday on import of selected items showed that import of motorcycle was up by 210.65 percent and 147.46 percent respectively in CBU and CKD condition during the period under review.
The automobile industry was given five years development plan with pre announced tariff and other incentives for investment at home but the growth in import of motorcars in CKD and SKD conditions surged by 4.33 to $157.536 million against $150.994 of last year.
However, the flow of Completely Built Units (CBU) cars declined by 21.59 percent in the first four months because of the government's ban on import of five years old cars. This seems to have benefited the assemblers at the cost of consumers who had increased 'on money' as well as prices.
Imports of CKD/SKD conditions buses, truck and other vehicles grew by 21.96 percent during the period under review to $60.026 million from $49.218 and motorcars import was up by 4.33 per cent from $150.994 million to $157.536 million.
Similarly, import of motorcycle in CKD/SKD condition swelled by 147.46 percent to $23.548 million from $9.516 million during first four months against the same period of last year, parts and accessories by 10.95 percent to $94.735 million from $85.383 million and other transport equipment by 181.82 percent to $19.006 million from $6.77 million.
The import of aircraft, ship and boats was up by 502 percent to $475.338 million from $78.939 million during the same period of last year. Further analysis of the data showed that import of transport sector was up by 235.41 percent in the month of October against September 2007.
The import of buses, truck and other vehicles in CBU condition was up by 27.17 percent to $13.233 million in October 2007 against $10.406 million in September 2007 and import of CBU cars increased by 19.07 percent to $37.212 million in October 2007 against $31.251 million in September 2007. The import of parts and accessories grew by 28.42 per cent in October 2007 to $28.230 million against $21.983 million during September 2007.
Copyright Business Recorder, 2007