LAHORE: The continuous import of used cars is hindering the growth in sale of locally manufactured vehicles as the local industry is still hovering around 150,000 vehicles per year.
About 25,000 to 30,000 used cars are still being imported every year, mainly in categories below 1000cc engines.
The Pakistan Association of Automobile Parts & Accessories Manufacturers (PAAPAM) has already recommended that the government’s Trade Policy should focus on new entrants to invest in Pakistan and start manufacturing their products. It suggested that definition of an export oriented company in SRO 327(1)/2008 should be redefined for the Auto Engineering Industry. Criterion set in SRO 327(1)/2008 should be modified for Auto engineering sector (APM), by defining that a unit exporting 25% of its total sales for first 3 years should be considered export oriented, and thereafter increased to 35%.
The local auto industry recommends continuation of CBU vehicles to be maintained on Negative List while trading with India. With respect to CKD parts, it recommends that OEMs, registered with EDB, may be allowed to import CKD parts at prevailing duty rates prescribed under SRO 656.
