Anticipation of 1 Million Units & the Sudden Brake

Not so long ago, Pakistan was planning to enhance its annual automobile production from the existing 250,000 units to about 1 million units over the next 5 years. But even before the flight to achieve that dream could take off, the local auto industry was hit hard by the recent import restrictions by the State Bank which badly exposed the high localization claims made by the local assemblers. Even the production of decade-old vehicles has been hampered due to lack of sufficient localization achieved during all these years.

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Policymakers’ Love With the On-Money Devil

Time and time journalists & researchers have pointed out the malpractices in the auto sector, especially regarding the on-money (own/ premium). During all these years, policymakers made some cosmetic measures to show they are serious to curb this menace, but no concrete measure has ever been taken to tackle the devil.

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Shortlisted WP29 Regulations Yet to be Implemented

Government in the latest Auto Industry Development and Export Policy (AIDEP 2021-26) decided that vehicles shall not be allowed to go on sale after June 30, 2022 whether locally manufactured or imported, which are not compliant of shortlisted WP29 regulations. However, we are already heading towards the end of July and there is no sign of implementation of the said WP29 standards.

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