People change their cars at the turn of the year and exchange their existing cars for newer models that the local manufacturers introduce. But this time, the people of Pakistan have been gifted with a mini-budget, which has led to an increase in car prices because the cost of inputs into local manufacturing have increased due to 1% additional custom duty. The government says that it has mostly imposed additional taxes only on imported items. The problem is that the local car industry uses quite a bit of imported items to go into these cars which has led to price increases. Constant rupee depreciation is another factor adding to the increase in car prices, which expected to hit 110 in upcoming days.
Karachi, December 8.