Import of used cars allowed

ISLAMABAD - Resisting the pressure of automobile mafia, the government has finally allowed the import of used cars from three to five years in order to eliminate the reckless monopoly of automobile cartel. The Commerce Ministry issued Statuary Regulatory Order (SRO) in this regard on Thursday. According to the official of Commerce Ministry, the increase in the age limit of imported second-hand cars from three to five years under 'personal baggage, gift and transfer of residence schemes. Market sources and economic experts believed that this move could reduce the prices of cars in the country, as it would increase competition on imported and local cars. It might be mentioned here that Economic Coordination Committee (ECC) of the Cabinet in its last meeting held on Tuesday allowed the Commerce Ministry to increase the age limit of second hand cars, however it was announced on Thursday. Ministry of Industries & Production was presenting the summaries in ECC meetings to increase the policy of used cars for the last few months, however, due to unknown reasons, ECC did not take this summery on its agenda and it was deferred several times. Sources in Ministry of Industries and Production told The Nation that Federal Minister had asked the auto manufacturers to reduce the prices of cars, however, they were reluctant to do so. The powerful manufactures did not consider the request of the Minister, therefore the Ministry had asked the ECC to increase the age limit of the second hand cars, which could reduce the prices of cars in the country. With the earlier ban imposed on the imported second-hand cars, the local car industry was at liberty to monopolise and misuse its position and the consumers had no alternate options other than purchasing the local vehicles at unaffordable rates. Besides charging higher prices from the customers, the dealer and manufactures are also taking extra amount in the form of own that ranges from Rs50,000 to Rs60,000. The main reason behind taking own money was artificial shortage, which was created by the automobile cartel. On the other hand, the auto sector blamed rupee depreciation against US dollar for higher prices of the cars in the country.

ePaper - Nawaiwaqt