March 3, 2006	Friday	Safar 2, 1427

KARACHI, March 2: Chairman Engineering Development Board (EDB), Waseem Haqqie has said that he will endeavour to resolve the issue of import of used cars on an urgent basis. He assured the local car manufacturers that the government by any means would protect their interests, says a press release.

He asked the local industry to continue with their expansion plans to be able to produce 500,000 vehicles by the year 2010. The Government will ensure that the locally manufactured vehicles continue to be sold not only in the domestic market, but are also exported.

During a visit to Pak Suzuki Motor Company (PSMC), he emphasized that the government wanted the local automotive manufacturing and vending industry to grow further and it attaches great importance to their active contribution towards the economy and as a major source of employment.

The Pak Suzuki, Haqqie maintained, is making future captive investments of more than Rs4 billion in capacity expansion to produce more than 110,000 vehicles in 2006.

The PSMC managing director Kenichi Ayukawa expressed serious concern on the import of used vehicles allowed in Trade Policy 2005-06. He added that the decision was causing significant damage to the auto manufacturing and vending industry.

With the liberalized imports and no check on used cars, the wheels of economic and technological growth are turning back and forcing the manufacturers and vendors to hold back their planned investment of over Rs80 billion by 2010 in capacity expansion projects, he said.

As a chain reaction, more than 200,000 people will lose their jobs. The contribution to the GDP, foreign investment and government revenues will significantly be reduced.