ISLAMABAD, March 23: The auto manufacturers have agreed to a government proposal for introducing a tariff-based system for the auto industry from the next fiscal year in compliance with the WTO regime. An official in the commerce ministry told Dawn on Thursday that the decision was taken following the refusal of the WTO committee to grant further extension to Pakistan for the continuation of the deletion programme for the auto sector.
He said that the ministry also received proposals from the local auto sector seeking restriction on import of used cars under the various schemes for overseas Pakistanis.
The automakers also proposed to raise the import tariffs and reduce the depreciation value on import of used-cars under these schemes to discourage the import of used cars.
The government in the budget last allowed depreciation on used cars of up to three years in the range of maximum 50 per cent. This decision was followed by further relaxation in procedures in the trade policy last.
The commerce ministry, however, defended their decision on the pretext that it helped in reducing the premium charges.
The local annual car production was hovering around 220,000 units. The target for 2010 was 500,000 units per year.
According to the statistics, the import of used cars had already crossed 8,500 units during the first seven months of the current fiscal under these schemes. During the current fiscal the import of cars was estimated to cross 43,000 units which included around 30,000 used-cars.
Local auto manufacturers said that as the leasing and financing of used cars had started it was feared that the import of used cars may reach to 40,000 units by the end of current fiscal and 70,000 units by next year.
Auto sector analysts proposed formation of a regulatory body to protect the interests of customers and for their satisfaction. “Such a regulatory body will not only boost the local industry but will help restore the confidence of the customers by ensuring proper after-sale service,” they added.
Unfortunately, it seems that the local industry is only concentrating on minting money and their tall claims of after-sale service are proving to be a mere lip service.
It has been observed that the customer’s complaint often goes unattended or the response did no comply with the fundamentals of the issue.
