The New Auto Policy of Pakistan is expected to drag down import duties by a whopping 80%. Yes all my fellow car lovers, finally a step is being taken to further rid us of the limitations that come with the Pakistani Auto Industry.
The dismal condition of our faltering auto industry is no secret. The car financing system is grossly underdeveloped and the high prices of the cars limit options for a potential buyer.
The sky-rocketing and unjustified prices of cars manufactured by the Big 3 of the auto industry have taken us to the edge of the cliff. The Big 3 continue to rule over the auto industry and discourage competition from entering the market so as to keep the competition at bay and protect their overcharging practices.
The new Auto Policy drafted by the automotive stakeholders proposes an 80% decrease in the import duties. This will drastically boost up the condition of the Auto Trading Industry of Pakistan.
The policy proposes that the new entrants will enjoy an 80% reduction in custom import duties for the next 5 years and the existing automakers will benefit for the next 2 years.
The reforms in the Auto Policy include much-needed additions such as:
1) New designs of the car models have to be introduced after every 10 years.
2) A vitally needed Car Recall system. Thousands of vehicles are recalled by car manufacturers across the world due to some manufacturing fault. These faults can contribute to dangerous accidents and death. Yet in Pakistan, the car manufacturers seem to defy the ethical practice. Hopefully, this will end after the policy is implemented.
3) To deal with the delays in consignments, the policy proposes that 50% of the total amount should be paid at the time of purchase and the remaining amount be paid after the delivery. Delays exceeding 90 days will be subject to penalties.
4) The policy proposes that every vehicle be fitted with a car security system by the manufacturers without charging extra.
The effects of this policy, if implemented, as it is proposed will be numerous. More competition will enter the Pakistan Auto Industry bringing prices down and better cars in the market. The Pakistani economy will sustain healthy benefits and potential buyers will be more attracted towards cars at lower prices. Also, different international models will be seen in Pakistan with better safety and emission features.
Cheers to the New Auto Policy!