KARACHI, Feb 6: As the local bus assemblers are already facing a production slowdown because of suspension of the Urban Transport Scheme (UTS), they say that their financial viability is further threatened by increased arrivals of imported second-hand buses under various schemes.

Five local bus makers had informed Central Board of Revenue Chairman Abdullah Yousuf late last month that 400-500 used buses had arrived during the last six months under the transfer of residence (TR) scheme offered to Pakistani nationals.

The assemblers said that built up second-hand buses are reportedly being imported by misusing the TR facility and added that these buses were very old and had already completed their operational life.

An executive of a leading company says that a locally-made complete bus costs Rs5 million, while imported second-hand buses are being sold at Rs1.8-1.9 million. “Our air-conditioning unit, being installed in the locally-assembled bus, costs Rs1.6 million, while one can buy a complete used imported bus by paying a few lakh rupees more,” the executive added.

He said that these used buses, arriving from Japan via Dubai and Singapore, could be seen on the roads of Lahore, Faisalabad, Multan and other parts of Punjab, while some buses were also operating in Karachi. He said that 400 more used buses are expected to land in Pakistan.

According to the Pakistan Automotive Manufacturers Association (PAMA), bus sales in July-December 2005 declined to 449 units from 493 units in the same period of 2004. The industry was satisfied with the rising sales during January-June 2005 which surged to 993 units as compared to 809 units in January-June 2004. The decline in bus sales during July-June 2005 was mainly because of suspension of the UTS scheme.

The assemblers urged the CBR chairman to impose a ban on the import of used buses under the TR scheme otherwise misuse of the facility would give a severe blow to the local industry.

The executive said that the government was now planning to introduce more CNG buses to save foreign exchange being spent on import of diesel.

The Qaumi Tajir Itehad Bus Body Makers Association Lahore) has also urged the government to take notice of the rising import of used buses that may result in closure of around 500 bus workshops across the country and rendering thousands of people jobless.

The association said the workshop owners, who assembled bodies for Hinopak, Isuzu, Nissan and other small commercial vehicles, were already facing problems due to rising cost of raw material used in making of iron and its related products.

It said that these used imported buses were plying various parts of the country and also on the motorway. “These buses have already outlived their usefulness and are being imported.”