THIS refers to the news report ‘Cabinet clears imported cars stranded at port’ (Feb 21). The government’s sudden change of heart appears to be under the pressure of the powerful importers’ lobby who make fabulous profits by misusing the facility.

There is no logic in allowing the import of used vehicles when a number of automobile manufacturing plants are operating in the country. If the plants are operating below capacity or unable to meet the demand, they can be persuaded to work full capacity or initiate an expansion of the facility to increase the output. There is no reason why these plants would not do so to meet the rising demand at an affordable price, given the right incentives.

It will also eliminate the practice of the premium charged on immediate delivery.

However, the usual delivery time of three to six months by local manufacturers is not unreasonable, but it seems to be a pretext to allow the import of used vehicles. Rather than encourage people to have private vehicles, we should promote public transport. In India until the 1980s, every applicant desiring delivery was in the queue for a year or so, while the imports remained totally banned. Once the domestic production geared up rapidly, the availability eased off.

Unnecessary and avoidable import of foreign goods is a drain on the scarce foreign exchange resources and is burdening our external trade account while increasing the current account deficit — now 48 per cent.

The government should learn to live within means as Pakistan has become one of the most debt-stressed country of the world.

K. Arif

Karachi

Published in Dawn, February 26th, 2018