This is with respect to the demand of the All Pakistan Motor Dealers Associations to allow commercial import of used vehicles of up to 10 years of age in the forthcoming budget. This proposal seems to be in line with the prevalent misconception that anything imported is better than its locally produced counterpart. We lack the pride in buying “Made in Pakistan” products and instead run after foreign brands. Such an attitude is detrimental to our country as it hinders the growth of the economy. When we import vehicles, the foreign exchange reserve depreciates as the monetary amount we pay is less than the amount in terms of goods we receive since the item, vehicle in this situation, depreciates.
Further, our rupee depreciates as we pay in dollars leading to a decrease in supply of dollars and rise in the price of dollars versus Pakistani rupees. It is also to be noted that currently Pakistani rupee is at an all time low and is sliding down steadily. The proposed import policy will also impact our GDP negatively as imported vehicles will decrease the market for locally produced cars.
This will affect our established auto industry and they may have to take a difficult decision of cutting down production and the resultant lay off. The laid off workers will then contribute to the already high unemployment rate.
Therefore it makes sense for the government to not implement such a policy and instead encourage local production and consumption of goods as it only improves the economy and also inculcates a feeling of patriotism.
ALAMGIR KHAN
Karachi
