Used car import increases by 684pc in Pakistan

Used car import increases by 684pc in Pakistan

The significance of habituated buses has witnessed a 684 per cent increase in the first six months of the current financial time compared to the same period last time. further 16,500 units of habituated buses were imported from July to December 2023, marking an exponential increase compared to the roughly 2,100 habituated buses imported in the financial time 2022- 23. Breaking down the orders, there was a significant supplement in the import of frugality and small low-member buses, with nearly 9,900 units brought in, along with marketable vehicles, SUVs and Vans, which saw nearly 6,600 units imported.

Similarly, luxury vehicle significances also saw a notable shaft, among other orders. Abdul Rehman Aizaz, Chairman, Pakistan Association of Automotive Parts & Accessories Manufacturers( PAAPAM) attributed this phenomenal increase in habituated auto significances to the junking of nonsupervisory duty in the civil budget for FY2023- 24 on habituated buses of over to 1800cc.

He noted that while this move was intended to revitalize the automotive sector, it has proven mischievous to the original bus assiduity. This trend bears significant profitable counteraccusations, particularly for original merchandisers, facing an estimated loss of a stunning PKR 36 billion, pushing them towards check of their businesses.

He refocused on the irony that the elimination of the 100pc nonsupervisory duty only benefits importers and companies dealing in fully erected Units( CBUs), without offering any relief to the floundering original assiduity, which formerly faced significant demand-force challenges.

 Mr Aizaz stressed that the relief of locally produced buses with imported habituated vehicles is resulting in substantial profit losses for the government, as levies and duties that would have been generated from locally produced buses are now being missed out on. He explained that under the former policy, the government entered a fixed quantum of bones in levies anyhow of the original request prices of buses, whereas now duties and levies are grounded onex-factory prices, performing in implicit profit faults.

The swell in habituated auto significances presents both challenges and openings for the automotive sector and policymakers likewise, challenging a careful reassessment of programs to ensure sustainable growth and support for original diligence.

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