ISLAMABAD, April 7: The ministerial committee on cars is considering making recommendations shortly for implementing the decision of the federal cabinet to allow the import of reconditioned cars as the manufacturers of automobiles continue to fail in plugging the supply gap.

"The government would also be constrained to allow the import of used cars in case the high premium on new cars does not come down," said Finance Minister Shaukat Aziz.

Talking to Dawn here on Wednesday, the minister said that all the stakeholders, including car manufacturers, assemblers, distributors and importers, have been invited to give their presentations on Monday over the issue so that a certain decision could be taken for allowing the import of second-hand cars.

"We must give explicit relief to the people to buy cars on reduced prices for which all the stakeholders have been asked to give their point of view so as to resolve the issue as early as possible," the finance minister said.

The federal cabinet on January 10 had approved, in principle, to reduce import duties on CKD and CBU cars of lower engine capacity and approved import of second-hand cars in "due course".

Later a ministerial committee headed by the finance minister was constituted by the prime minister to decide about the makes and models of the used cars and the terms and conditions of their import.

Mr Aziz said the ministerial committee on cars met on Wednesday and discussed at length the demand and supply gap. The increased prices of new cars in the shape of increased premium, he said, was a matter of grave concern for the government because it was hurting the interest of the people. "This is some kind of a black marketing which cannot be allowed," he added.

The finance minister said that Wednesday's meeting, which was also attended by ministers for industries, commerce, interior and information, was of the view that people desirous of buying cars must be supported by the government and that the car manufacturers would have to reduce their prices keeping in view the trends in the region.

Mr Aziz, however, pointed out that the committee would carefully listen to the point of view of all the stakeholders before deciding to allow the import of reconditioned cars.

Responding to a question, the finance minister hinted at the possibility of reducing tariff for importing cars in the next budget. "I anticipate certain change and readjustment in cars' tariff in the budget for 2004-05," he said.

The finance minister agreed the prices of cars in the region were lower than in Pakistan and said: "This is why the government is deliberating on the issue for the benefit of our people."