KARACHI, April 30: Automobile assemblers have agreed in principle to reduce the prices of the locally manufactured cars by June 1, this year.

This was stated by the Federal Minister for Industries and Production Liaquat Ali Jatoi at a press conference after meeting with automobile assemblers at PIDC House here on Wednesday.

Secretary Industries and Production Dr. Akram Shaikh, PIDC Chairman Zahid Husain, chairman, Pakistan Automobile Manufacturers Association, Kunwar Idris and chief executives of various car assemblers were also present on the occasion.

The minister said that automobile assemblers have sought time for acquiring approval from their respective board of directors for reducing car prices.

He did not give the percentage or range of reduction in prices but said it would be announced by the companies after obtaining approval.

Jatoi said that he had started negotiations with the car assemblers, on the instructions of Prime Minister Mir Zafarullah Khan Jamali to reduce car prices.

He said that government would take all measures to support automobile sector. “But, in return the government wants car assemblers to share this profit and pass on this benefit to consumers as well in the shape of price cut,” he added.

The minister pointed out that automobile sector has recorded a growth of 40 per cent and car production has doubled in the past couple of years, now assembling 1300 to 1400 unit a month.

“I will provide full support to automobile sector and would not allow the import of used cars,” he said and added that this would boost production and create more job opportunities.

Dr Akram Shaikh read out the agreed draft for price cut and said that this would be effective from June 1, 2003.

He said that huge investment had been made in automobile sector specially by vendors, providing jobs to hundreds of people.

He said the industry paid a revenue of Rs24 billion during 2002-2003 and saved $700 million to the national exchequer.—APP