June 17, 2002	Monday	Rabi-us-Sani 5, 1423

The requirements of transport for domestic and public use have now become the necessity of Pakistan primarily due to growth in the population and business dealings taking place in primary, secondary and tertiary sectors. Further more due to population shift from rural areas to urban cities the necessity of public and private transport has become pressing for the people of Pakistan.

The import of new or used cars, vans, station wagons, etc are banned into Pakistan and only restricted import is permissible under the scheme of transfer residence or in case someone lives abroad for a continuous period of six months or more. Such overseas Pakistanis although Pakistani nationals are required to undergo stringent procedures through their respective consulates or embassies of Pakistan which practically restricts the import of cars even for their personal use.

Potentially these restrictions were imposed to encourage the local manufactures to invest money and produce quality vehicles for Pakistanis at reasonable price so that an average middle class family can buy a car for personal use. Unfortunately as we can see it happening today in Pakistan that this dream does not seem being fulfilled due to the assemblers responsible to provide cost effective solution of transportation.

Today the prices of locally assembled cars are touching the highest limits and an average middle class person cannot even think of buying a new car and instead has to rely on public transport which is again in hopeless condition. The local car assemblers are making huge profits due to imposed restrictions on importation of cars by the government, leaving the public to face difficulties and hardships by paying additional money to local assemblers. There has been many appeals by the car dealers and their respective association to lift the ban whilst importers and general public be allowed to import freely reconditioned and used cars into Pakistan. This permission will not only facilitate the public but also government could generate millions of dollars in terms of custom duty, needles to say the many more people would be able to purchase a car for their families.

Such permission will definitely force the local manufacturers to reduce their heavy profits and shall be in competition with other brands not produced in Pakistan. There have been times when our rupee had depreciated against US dollar and the assemblers immediately increased the price of the car; however, now that the rupee has gained strength, they are not reducing price. The relevant government authorities really need to look into their importation practices and invoicing strategy and compare the prices with the international market and need to conclude how they are importing the components and engines including the ancillary and their respective import value.

Pakistan is a country with excellent talent and skilled manpower and wages are lower than most of the countries manufacturing vehicles, low cost availability of infrastructure and other amenities then how the prices being charged are so high. The only solution to this problem is to allow import of cars, buses and other vehicles on a duty-paid basis, let these manufacturers compete with them.

In order to streamline the imports and facilitate the overseas Pakistanis who are actually contributing a lot to Pakistan in terms of foreign exchange, all overseas Pakistanis registered with the protector of immigration should be allowed to import / gift at least one car / public vehicle per year to Pakistan. The payment for the vehicles duties and taxes should be paid by overseas Pakistanis in foreign currencies hence the government of Pakistan will benefit in foreign exchange.

The local assemblers must recognise that they are obliged to produce quality vehicles conforming to the international standards at the best price but our quality of vehicles cannot be compared with the vehicles produced in other countries. What if we start exporting these cars to other countries would it be accepted by them? I doubt it.