The Pakistan Economy Watch (PEW) on Sunday said the much-publicised Yellow Cab Scheme is not coming up to the expectations due to mismanagement. The scheme was launched on 14th of July 2011 aimed at distributing 2500 vehicles every month for eight months for the elimination of poverty and unemployment, it said.
However, the plan could not be executed properly as thousands of cars are rusting at different showrooms across Punjab awaiting delivery, said Dr Murtaza Mughal, President of the Pakistan Economy Watch (PEW). Authorities recently announced that 5000 applicants have won the lucky draw only to find that 4,600 submitted fake documents, he said adding that verification process should have been completed before the balloting.
The Punjab government is yet to decide to hold another draw or invite fresh applications making it unlikely for them to distribute 20,000 vehicles-16,000 Suzuki Mehrans and 4,000 Bolans-by the deadline, said Dr Murtaza Mughal.
He said that proper measures should be taken to keep this scheme successful lest it meets the fate of Sasti Roti Scheme and Yellow Cab Scheme launched in early 1990s.
Billions were lost in the earlier scheme, it drained the exchequer, invited criticism, hurt local auto industry while thousands of cars were converted illegally, he said.
Dr Murtaza Mughal said that all such schemes have weaknesses; recovery rate is lower, government has to pick up the losses and the political interference keeps the targeted group from benefit of credit. Moreover, the lack of knowledge, collateral and security requirements stand in the way of the poor, he added.
International donors would not favour such schemes considering them ineffective and against the market-friendly system, said Dr Mughal.
Comments
Comments are closed for this article.