Low investment

This refers to the letter ‘Production decline’ (Dec 18) by Engr Asim Nawab. A modest sized full-fledged auto manufacturing plant requires an investment of at least $500-600 million by international standards. On the other hand, the investment made by bigger auto assemblers in Pakistan is less than $75 million. In other cases, it is a mere $25-30 million.

The writer has omitted to mention that the auto industry has never tried to meet the deletion target set by the government. It is arising from their unwillingness to put in the needed investment. Nevertheless, the auto assemblers are making a huge profit in the absence of price controls by the government. Lower standard and higher price restrict sale to just the domestic market where the people have no choice.

Kulsoom A Majeed

Karachi