ISLAMABAD, Aug 19: In order to check price hike, the government has banned the sale and transfer of new cars within six months of their purchase.

“The new cars would be registered in the name of the booker who would also give his identity card number at the time of booking and the registration would be non-transferable for six months,” said Commerce Minister Abdul Razak Dawood at a news conference on Monday.

He said the crisis of premium prices had been created by the speculators who booked cars in lots and then sold them at high prices.

“In future, whosoever booked a car would be required to give his ID number, so that the car is registered in his name, and would not be allowed to sell it within first six months of the registration,” he said.

He appealed to the people not to pay premium prices and expressed his hope that the situation would ease shortly.

He said the manufacturers had agreed to pay interest at market rates to the buyers in case of delay in the delivery of cars beyond 60 days of booking. Earlier, the manufacturers paid interest after 90 days of booking but the period had been reduced because of increased production, he said.

The minister expressed his ignorance about the purchase of 1,600 Toyota vehicles by the interior ministry without open tendering.

He was asked about the allegation levelled by Pakistan Tehrik-i-Insaf chief Imran Khan that the government had made advance payment of around Rs2 billion to a party for 1,600 Toyota vehicles for police and other law enforcement agencies over a year. “I don’t know anything about it. I don’t have its details so I can’t comment on that,” said the minister when asked whether the supplier would also be required to pay interest on the advance payment.

He said production of cars had almost doubled this year. The Toyota car production, he said, had increased from 52 units in February to 800 in July and the target for August was 900. Suzuki car production increased from 651 in February to 1,100 in August and would stabilise at around 1,200 per month from September.

Honda Civic production increased from 240 in January to 575 in July.

Razak Dawood said that for the first time the investors invested in cars instead of the stock market and real estate, while availability of lease money increased the demand for new cars.

He said the car industry had achieved 52 per cent indigenization.

He said consumer financing for televisions, refrigerators, washing machines, air-conditioners and motorcycles would result in cost cuttings and expansions.

Industries Secretary Dr Akram Sheikh, responding to a question, said the Monopoly Control Authority would take action against a decision of the cement cartel early this month to increase prices and reduce production.