Ahmed Mukhtar Naqshbandi
ISLAMABAD/LAHORE: The Pakistan Business Forum (PBF) said on Wednesday that the automobile sector had raised the prices by up to 149 per cent during 2018-23, linking it with the dollar rate against the Pakistani rupee. It said that vehicle prices have reached the highest level in their history.
PBF Vice -President Ahmad Jawad told APP that three major automobile companies in Pakistan had revised the prices three times in just one and a half months after the rupee deprecation against the US dollar.
Now the Pakistani rupee was on the upward side, as its value appreciated substantially against the US dollar from Rs277 to Rs261, he said asking the big three companies in the automobile sector to reduce their vehicle prices and withdraw their last two circulars regarding price hikes issued after January 12, 2023.
He said that analysis of car and bike prices increase vs. cost – adjusting to taxes from 2018-23 revealed that car prices were up by 149 percent, auto parts prices rose to 90 percent from 33 percent, and PKR depreciation was 71 percent.
Ahmad Jawad said that vehicle prices in Pakistan were much higher than in neighboring countries. The government should review it seriously, arguing on what grounds the automobiles in India were cost-effective for customers, even if we add currency conversion between PKR and Indian Rupee.
While responding to a question, he said, “No doubt vehicles are expensive, but the main issue is that the consumers do not get the best value for their spending,” adding that overpricing and that too without the internationally standard safety and quality features was the real issue.
The PBF vice-president said that, unfortunately, the country’s automakers transfer the burden straight away to the end buyers instead of reducing/managing their profit margins in the volatile economic situation.
Jawad urged the government to consider price control mechanisms while focusing on promoting the auto industry. He asserted that the industry should be asked to explain how different things – taxes, dollar rates, and local production of parts – influence the prices, and the government should also monitor the prices of automobiles.
