KARACHI (PR) – Import of any manufactured item is detrimental to the local industry and consumer let alone a car and that too used for five years, Govt and legislatures should realize that promoting an illegal trade will not only devastate the local industry but will hurt its reputation as well, Iqbal Hussain Shah, Vice Chairman PAMADA said in a statement. Pakistan Automobile Manufacturer Assembler Dealer Association (PAMADA) has questioned the statements and data given by different pseudo representatives of car dealers and Govt officials regarding shortfall in tax collection in case the used car policy is reverted to 3 years.

PAMADA said these associations cannot prove the misleading figures as the government knows how damaging the imported used cars are for the national economy. PAMADA said ‘the used car business is providing employment to only few out of 4,000 dealers nationwide which has non technical labor and cannot be compared with the highly trained and technical staff contributing to GDP through taxes and remittances.’ In fact, PAMADA adds, it is local auto industry that has employment of over 2.2 million people while used car industry doesn’t have minuscule employment. Similarly, local auto industry saves more foreign exchange as it spends on average $4600 to import one CKD unit against the $9800 spent on one used car unit and that too transmitted through illegal means, which means the government is losing $5000 in terms of foreign exchange on one imported car.

Moreover, he said, it is not only the age but the ITPs set in 2005 after which international car prices have been jacked up due to currency depreciation and huge 40pc depreciation allowance that eases down imported cars’ prices, if the same rebate is given to local car industry the consumers will have cheaper brand new Made in Pakistan cars.

PAMADA further said that it is quite obvious that only local auto industry creates real economic activity as auto parts worth over Rs. 60 billion manufactured locally every year, while in the used car import segment there is no local manufacturing.