PAC slams reversing of decision to allow used cars’ imports

ISLAMABAD – The special committee of the Public Accounts Committee (PAC) on Friday criticised the government for reversing the decision to allow the import of three to five year old used vehicles in the country.
The special committee meeting, chaired by Khawaja Muhammad Asif, called the decision anti-consumers, adding that automobile manufacturers in the country were selling low quality vehicles at exorbitant prices. Zafar Mehmood, secretary of the Ministry of Commerce, told the committee that the government’s earlier decision to allow the import of three to five-year old used cars was reversed after a meeting of the prime minister with representatives of automobile manufacturers.
Meanwhile, representatives of the automobile manufacturers denied any such meeting had taken place with the prime minister.
They, however, said that import of used vehicles would damage the local industry and affect 1.4 million families, directly or indirectly associated with the industry.
They also asked for removing regulatory duty on locally-manufactured vehicles to enable the automobile industry to reduce prices and provide vehicles to the consumers in time. The special committee chairman, Khawaja Asif, however, said local automobile manufacturers were fleecing the people because they were selling low-quality cars at exorbitant prices.
He said they habitually delayed provision of cars despite of the fact that consumers paid full amount for the vehicles.
The committee also agreed with the Competition Commission of Pakistan that imports of used cars would lead to improvement in the quality of local vehicles and reduce their prices for the benefit of the people.
The committee also criticised the prime minister’s decision of reversing the allowance to import used vehicles, saying the decision protected the automobile industry which was exploiting the people.
The commerce secretary said the ministry had sent a new summary to the Economic Coordination Committee (ECC) regarding removal of the ban and the ECC was likely to take up the issue in its upcoming meeting.