MEDIA reports suggest a steep fall in car sales due to devaluation of rupee, hike in interest rate and customs duty. These measures have badly affected the auto industry while local businessmen are suffering because auto investment has stopped and international brands have postponed launching any new product in current situation.
Auto industry was flourishing and there was great demand for cars that local industry was finding it difficult to deliver vehicles to customers as per their requirements and in most of the cases they had to wait for months and even years to get a new car. It was because of rising demand that almost all big names from different parts of the world made a beeline to make investment in the auto sector and announced plans to produce different models to meet demand of the Pakistani market. However, the situation has changed to the worst during the last one year due to government’s flawed policy and situation has reached where there is up to 64 percent decrease in car sales and the situation may turn worse if remedial measures were not taken immediately. The Government devalued the currency due to IMF pressure on the pretext that it would benefit our exports but exports did not pick up and auto manufacturers say the devaluation was devastating.
Auto industry is not the only example as lucrative real estate sector is also facing an unprecedented crunch due to wrong approach and policies impacting upon economic growth and prospects of creation of new employment opportunities. A review of economic policies is long due and the existing focus merely in increasing the tax burden without any facilitation to businesses needs to be reversed.
