Commercial import of used cars: government analysing losses inflicted on local industry, says Naghmi

Federal Secretary Industries Shafqat Naghmi has said that government is analysing the losses that commercial import of used cars has incurred on local industry and investigating if the facility, meant to facilitate overseas Pakistanis to bring home the car they use in foreign countries, is being misused.
He made these observations during his visit to the manufacturing facilities of car makers and vendors who were pleasantly surprised at the interest shown by the secretary to get first hand knowledge of industry problems. After observing the quality of work and use of high tech procedures by vendors and car manufacturers Naghmi said the quality and use of high end technology and amount of investment in the Auto Industry is not only admirable but also gives impetus for the government to encourage the local companies to invest further and acquire latest technology being used globally in the auto industry.
He visited Indus Motors, Suzuki, and vendors Alson and Al-Noor and then he met with Pakistan Automotive Manufacturer Association (PAMA) and Association of Pakistan Auto Parts and Accessories Manufacturers (PAPAAM) officials as well. The Federal Secretary agreed with the industry that the value of used cars prescribed in SRO 577 are very low and do not reflect the current values in the international markets.
"We have to encourage local engineering concerns in the country and Auto Industry Development Plan (AIDP) need to address this issue" he said while asking the industry to help in formation of AIDP II as soon as possible. He said that industry need to be better prepared for the challenges ahead.
Naghmi asked the industry to deliver volume committed in AIDP in 2012-2013 and succeeded in obtaining the sureties committed by the government. He was of the view that new entrant policy should ideally be extended to existing players also on introducing new models and categories.
"Government is fully committed to support all industrial sectors as job creation is possible only through industrial growth" he said stressing industry to move to wholesale retail system and improve the dealer network and their performance by OEM. Members of PAMA and PAPAAM appreciated his comments and the keen interest he had shown in industries' affairs. They assured him of their full co-operation in this regard. The members of PAMA also gave a brief presentation on Heavy Commercial Vehicle (HCV) sector highlighting the issue of used trucks and sprinklers which is hampering growth of local industry.-PR