LAHORE, Feb 22 (APP):Pakistan Business Forum (PBF) said on Wednesday that automobile sector had raised the prices by 149 percent during 2018-23 linking it with dollar rate against Pak rupee and now vehicles prices
reached up highest level of their history.
PBF Vice President Ahmad Jawad told APP here that three major automobile companies in Pakistan
had revised the prices three times in just one and a half months in the wake of rupee deprecation
against US dollar.
Now Pak rupee was on upward side, as its value appreciated substantially against US dollar i.e. from
Rs 277 to Rs 261, he mentioned and urged the big three companies in the automobile sectors to reduce
their vehicle prices and withdraw their last two circulars regarding price hike issued after January 12, 2023 onwards.
He said that analysis of car and bikes prices increase vs cost – adjusting to taxes from 2018-23 revealed
that car prices up by 149 percent and auto parts parts prices increased to 90 percent from 33 percent
with PKR depreciation was 71 percent.
Ahmad Jawad added that vehicles prices in Pakistan was much higher than neighbouring countries,
which needed to be reviewed seriously by the government, arguing that on what grounds the vehicles
in India were cost effective for costumers, even if we add currency conversion between Indian Rupee
and PKR.
To a question, Jawad said, “No doubt cars are expensive but the real issue is that the buyers do not
get the best value for their money,” adding that overpricing and that too without the international standard
safety and quality features was the real issue.
PBF Vice President said that unfortunately, country’s automakers transfer the burden straight away
to the end buyers instead of reducing/managing their profit margins in the volatile economic situation.
He urged the government to also consider price control mechanism while focusing the promotion of
auto industry.
Jawad asserted that the industry should be asked to explain how different things – taxes, dollar rate
and local production of parts – influence the prices, and the government should also monitor prices
of automobiles.