KARACHI: The auto sector is a top contributor to the government’s kitty in terms of taxes, as 33 percent of a vehicle’s price is paid as taxes.
Indus Motor Company Chief Operating Officer Ali Asghar Jamali said that the auto sector creates thousands of jobs for the skilled people.
Jamali said there was much debate that the cars manufactured in Pakistan were overpriced as compared to the region. “However, the comparison of Pakistan’s most selling Toyota Corolla prices in the region shows that it is cheaper in Pakistan than in India, China and Thailand,” he said.
The IMC’s COO said auto industry can increase its contribution to national exchequer if the government prevents the misuse of used car import policy by revising duties and taxes.
“Auto industry can also flourish and rise as a key player in the region if Auto Policy 2016-21 is not tinkered with for the next five years, providing the ground for manufacturers to plan their investment and production plans,” he added.
The official said through extensive localisation some of the models, being manufactured in the country, comprise of almost 70 percent locally produced parts, made in accordance with the highest global quality and safety standards. “In this way, the auto industry has also facilitated saving millions of dollars of foreign exchange,” he said.
“Due to low per capita income, only 16 out of 1,000 people in Pakistan currently have access to a vehicle that is in stark contrast to 18 in India, 30 in the Philippines, 69 in Indonesia, 206 in Thailand and 361 in Malaysia.”
Jamali said Pakistan is set to become the 4th largest populated country by 2030 of 240 million people, “and this presents a huge potential for growth of the mobility sector in the country.”
“The confidence of original equipment manufacturers and the parts supplier industry, that invested more than Rs100 billion in automobile and parts manufacturing, has been somewhat low due to frequent policy changes in the past,” he said. “The Asian countries such as Japan, Korea, Thailand, Malaysia, China, Indonesia, India and Vietnam present a great case of economic revivals and turnaround by way of having a vibrant manufacturing base, particularly of automotive manufacturing.”
