ISLAMABAD, Apr 07 (APP):Minister for Parliamentary Affairs Dr. Tariq Fazal Chaudhry on Tuesday apprised the Senate that the trend of rising automobile prices was not limited to Pakistan alone; rather, global inflation, particularly after the COVID-19 pandemic, had contributed to higher vehicle prices worldwide.” Replying to a question during Question Hour, he said one of the key factors behind the price increase in Pakistan was the depreciation of the rupee, …
Global inflation, depreciation of rupee contributed to higher vehicle prices: Senate told
ISLAMABAD, Apr 07 (APP):Minister for Parliamentary Affairs Dr. Tariq Fazal Chaudhry on Tuesday apprised the Senate that the trend of rising automobile prices was not limited to Pakistan alone; rather, global inflation, particularly after the COVID-19 pandemic, had contributed to higher vehicle prices worldwide.”
Replying to a question during Question Hour, he said one of the key factors behind the price increase in Pakistan was the depreciation of the rupee, as the exchange rate had risen from below Rs100 per dollar during the last PML-N government to around Rs280 in recent years.
He explained that since a large portion of auto parts used in locally assembled vehicles were imported, the increase in dollar value had directly impacted production costs.
Tariq Fazal Chaudhry further said multiple indirect taxes also contributed to higher vehicle prices, as the tax base in the country remained limited despite efforts to expand it.
He said the government had also introduced policies to regulate vehicle imports, including restrictions on importing cars older than five years, to support the local automobile industry and promote domestic manufacturing.
The minister said the government was committed to facilitating the local auto sector while also aiming to reduce prices over time.
Responding to concerns regarding non-custom paid vehicles, he rejected the impression that such vehicles were legally allowed in Khyber Pakhtunkhwa or Balochistan.
He clarified that non-custom paid vehicles were illegal across Pakistan, including all provinces, Azad Jammu and Kashmir and Gilgit-Baltistan.
Tariq Fazal Chaudhry said enforcement agencies, including customs intelligence, were actively taking action against such vehicles, which were seized wherever identified.
He emphasised that no province had any official policy allowing non-custom paid vehicles, adding that any such vehicles in use were in violation of the law.
