LAHORE, Dec 23: Minister of State for Privatization and Investment, Umar Ahmed Ghuman, has said that prices of automobiles in Pakistan will show a substantial decline after the year 2007.

He was addressing at the opening of 3-day Automobiles international exhibition ‘Auto-tech Pakistan- 2005’ at Fortress Stadium here on Friday. Chief Executive Noble Standard, the firm organizing the exhibition, Ahmed Masood was also present.

He said that the cut in prices will be due to sincere efforts of the government to bring them within the reach of the common man by providing a competitive environment and encouraging maximum investment in this sector, the minister added.

Foreign investment in the automobile sector has witnessed a rapid increase in recent years and a number of manufacturers are ready to set up plants in the country which would, ultimately, bring the prices of automobiles at par with other countries of the world, he said.

‘Automobile Mafia’ in Pakistan is responsible for not allowing reduction in the prices, the minister said adding that the government would eliminate factors behind the higher prices of cars to enable its citizens to get cheaper vehicles, he added.

At present cars are being sold on 12-14 per cent financing in the country, while the government is negotiating with a German firm to deliver cars on just 4 per cent financing, the minister said

He, however, made it clear that the duty on imported cars will not be reduced as the government wants to protect the domestic industry and increase its production. —APP