The removal of regulatory duty will significantly lower the prices of 1,800cc imported vehicles, All Pakistan Motors Dealer Association (APMDA) Chairman Haji Mohammad Shehzad said Saturday.
"The imposition of regulatory duty last year had made vehicles more expensive, which had a negative impact on sales and purchases," he said while talking to a private news channel.
He appreciated the government's decision to remove the regulatory duty and expressed the hope that if the decision was implemented soon, there would be a significant reduction in vehicle prices in the upcoming months despite a possible increase in the dollar rate.
Shehzad said that due to the increase in the prices of cars, people had stopped buying them, which caused the industry to lose billions of dollars.
For instance, Honda Atlas Cars Limited, which used to sell 50,000 vehicles a year could only sell 10,000 vehicles in 2023, he said.
The APMDA chairman suggested that if Pakistan manufactured vehicles instead of importing them, not only would prices come under control but the government could also collect revenue of around $1-1.5 billion annually.
He further said that according to an MoU signed in the 1980s, Pakistan was supposed to bring transport technology within five years and manufacture vehicles itself, but unfortunately, it could not be implemented to date.
He also suggested that if a restriction on the import of used vehicles older than three years was changed to five or seven years, it would have a positive impact on the automotive industry.
Data shared by the Pakistan Automotive Manufacturers Association showed that in the first nine months of the current fiscal year, a total of 85,776 units were sold, down 50% against 172,612 units sold during the same period in FY22.
Meanwhile, car companies in Pakistan have sharply increased prices in recent months, citing the rupee's depreciation among other factors.
The government had restricted imports, including by imposing heavy regulatory duties, in a bid to control the outflow of dollars as the country faces a foreign exchange reserves crisis.
Consumers will get Rs4.12 per unit reduction in May electricity bills in terms of fuel cost adjustment
Samsung beats Apple to become top mobile seller
Finance minister says Pakistan doesn't need more policy prescriptions as it knows what it needs to keep economy steady
Trump Media share prices fall taking his net worth down as hush money trial begins
High-speed diesel goes up by Rs8.14 per litre to Rs290.38 per litre, reads notification
Electricity rate should be reduced for industrial consumers, says Premier Shehbaz
