Aamir Allawala Chairman and Nabeel Hashmi Vice-Chairman of Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) have expressed their shock over the Cabinet decision to increase in age of second hand cars from 3 years to five years.
Talking to Business Recorder here on Wednesday Vice-Chairman Nabeel Hashmi said "It is sad and very shocking since Ministry of Industries and Production has all along been assuring them that in the interest of the local auto industry, it will never support such a proposal.
It may be added that the Federal Cabinet upheld its earlier decision on Wednesday to allow import of upto five years old vehicles in order to facilitate overseas Pakistanis as well as to ensure fair competition within Pakistan to help reduce the prices of cars and other vehicles.
Commenting on the government's decision, the Paapam leaders said that Paapam members are part of the fully documented sector, employing more than 200,000 skilled workers, which are 95 percent of the total workforce in the country's automobile industry. By liberalising the import of used cars, the government has effectively signed the death warrant for the livelihood of these families working for average salaries of Rs 10,000 a month.
On the contrary, this policy of facilitating the import of used cars, will meet the unfair demands of the elite of this country while sacrificing the interest of the common man, they added. According to Paapam information, out of approximately 400 used cars that have been imported in the last one month, 80 percent are more than 1800cc engine capacity, each of which is worth millions of rupees.
Paapam is specially disturbed on the fact that the government has been ignoring vendors' requests for full implementation of Auto Industry Development Plan (AIDP) since last several years. Accepting this demand would have led to more localisation and stability in car prices, similar to tractors and motorcycle sectors. Now, instead of promoting local content, the GoP has opted for an anti-industrial policy of encouraging import of used cars, Allawala and Hashmi said in a joint statement, here on Wednesday. The Paapam management demanded to know whether the GoP only wants to facilitate the rich or to protect the industrial sector and poor working class of this country.-PR
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