lahore - The Lahore Chamber of Commerce and Industry on Tuesday urged the government to evolve auto policy for new and used vehicles as its indecision is negatively impacting investors’ confidence and hurting the local industry.
LCCI President Engineer Sohail Lashari said that the government should immediately revisit its used car import policy and revise the fixed duty structure in line with the current new vehicle levies.
The LCCI President added that the government should think long term. Auto industry is cherished and nurtured wherever it exists because of its many backward and forward linkages and promotion of jobs.
In Pakistan it is a rare fully documented industry which has invested billions in bringing technology and jobs to Pakistan, therefore new auto policy for new and used vehicles should be evolved under Public-Private Dialogue (PPD) after taking both the sides into the confidence.
The uncertainity in auto policy and liberal used car imports are giving extremely negative signal to all existing and prospective investors. With the present situation, any investor will think hard before committing to any investment in Pakistan so the government must clarify its position on auto policy as soon as possible, he added.
The new policy should be drafted keeping in view our national interests – which is to create more jobs and have sustainable economic growth. Our ailing economy cannot afford the luxury of importing built-up vehicle, instead we must encourage local industry to provide mobility solutions as it reduce the spend on foreign exchange by 2/3rd and creates local economic activity.
The local auto industry is one of the biggest contributors to national exchequer in the shape of duty/taxes besides creating jobs for over 1.4 million Pakistanis and saving huge amount of foreign exchange through extensive localization, he concluded.