'Duty reduction on imported cars to hit local industry'

Former Federation of Pakistan Chambers of Commerce and Industry (FPCCI) president and prominent automobile manufacturer, Raja Abdul Rehman has termed the reduction of duty on import of new cars in budget as lethal blow to local car industry.
Talking to Business Recorder on Wednesday, he said that in this sector many foreign and Pakistan companies have invested billions of rupees and are providing jobs to thousands of people and added that automobile sector may face hard challenges due to this step.
Raja Abdul Rehman said that the government has one complaint against automobile sector and that is high prices of locally manufactured cars and added that the measures adopted by the government including reduction of duty on imported cars are not a proper way to deal with the situation.
He said a proper way to handle the situation is to hold a meeting with local car manufacturers cum assemblers and discuss their problems and rectify them so that they could produce cars on competitive prices.
Replying to a question, former FPCCI chief said that localisation of car production and producing all car parts locally is another issue.
Raja Abdul Rehman said that this issue could also be resolved with dialogue. Production of all car components locally could be achieved in just three years if there was a will, he added.
He pointed out that several companies in Pakistan have capability to produce car components locally.
Raja Abdul Rehman said that his company also has the capability and capacity to meet the local market demand and can produce car components as per their specifications. Replying to another question about ban on two-stroke auto rickshaws, he criticised the ban and said that two-stroke auto rickshaws and motorcycles can easily be made environment-friendly by converting them to CNG. He pointed out that many countries have done this.
He said that by imposing the ban, the government has frozen millions of rupees of investors in this sector.
However, he said that his company has already started manufacturing four-stroke motorcycles and auto rickshaws.