The current economic crisis demands a considerable reduction in the import bill which is projected to be around $75 billion this financial year. The automobile sector is now facing delays in the deliveries of booked vehicles due to the delayed arrival of CKD kits. The booking process for new orders has also slowed down. It is pertinent to mention that the current deletion (car parts that are produced by local vendors) of potential car makers is 60-65 per cent.
To tackle the issues faced by local car makers, it is inevitable to acquire the latest technology of engine production from relevant original equipment manufacturers (OEMs). This can only be done if local car producers receive some support from the sitting government. This shift is likely to reduce not only the import bill but also the prices of cars. The local production of cars with more than 90 per cent deletion will be a viable option for exports, addressing the economic crisis of Pakistan up to a great extent.
Engr Asim Nawab
Islamabad