If newspaper reports are to be believed, the government has proposed to abolish protection provided to the local auto industry in order to provide fair competition to existing players which will go a long way in bringing down the prices of locally produced vehicles.
The auto industry has already expressed its deep concerns over the suggested government policy which is expected to have a major negative impact on the auto industry which is the largest contributor to the national exchequer.
It is a myth that reducing tariff on the import of used cars will help in providing cheaper cars to the consumers. In fact, this measure, if implemented, will turn the country into a junkyard of old, used vehicles that have very little useful life left. Already the statistics suggest that used cars, with no or little warranty, are being sold at almost the same prices as the brand new locally produced cars.
This policy will also create unemployment in the country and prove the proverbial death knell for the local automobile and auto parts industry.
SYED OVAIS AKHTAR
Karachi
