Should You Buy A Car In Pakistan Right Now? The subject of when the ideal time to purchase a car has arisen following the expiration of the regulatory tariff (RD) on vehicle imports in Pakistan. Although expectations for a big drop in the cost of imported cars were high, car dealers had different views on the subject.
Should You Buy A Car In Pakistan Right Now?
Effect of the Rupee/Dollar Exchange Rate on Automobile Prices:
The value of cars has significantly decreased as a result of the depreciation of the Pakistani rupee versus the dollar. Chairman Hajji Muhammad Shahzad used an example to show how the rising dollar value has driven up the cost of buying a car from $5,000 to roughly 1.5 million Rupees in just eight months. Although price cuts are expected, the rupee-dollar equivalent still stands as a direct barrier to significant decreases.
Dollar Duty on Imported Cars:
Price reduction is made more difficult by the fact that duties are paid in dollars rather than the local currency. Kamran Tabani, a car trader in Karachi, draws attention to the fact that nations importing vehicles frequently decide on their own currencies for duty payments. Even when regulatory requirements or car prices drop, Pakistan’s dollar duty keeps making it difficult for consumers to own a vehicle. In order to promote the automotive industry, Tabani wants the government to set taxes in Pakistani Rupees.
Economic Crisis and Weak Mechanisms for Price Fixing:
An economic crisis that includes declining foreign exchange reserves, a weakening currency, and high inflation has been plaguing Pakistan. Concerns about lax price-fixing and enforcement systems that permit local automakers to raise prices without explanation arise in this scenario. Shahzad draws attention to the safety issues with cheaply made cars from Pakistan that are exceedingly dangerous since they lack key components.
Effects on the Regional automotive industry:
The local automotive industry is also at risk from the rise in auto imports, which might result in thousands of people working in the industry losing their jobs. Associated industries including rubber, steel, and plastic can also suffer unfavorable effects.
Shahzad advises permitting the entry of cars and other vehicles up to seven years old in order to alleviate unfavorable circumstances. These cars cost between $1,500 and $2,500 in Japan, which might have a big impact on the local auto industry. The government might lessen the difficulties the business was facing by levying the required dollar duty on imported cars and promoting healthy competition.
Shahzad also suggests looking into the possibility of regional auto manufacturing as a solution. Investing in the growth of a homegrown automobile manufacturing sector might generate employment opportunities, lessen dependency on imports, and possibly result in more reasonably priced vehicles with enhanced safety features.
So, given the state of the economy, should you buy a car now? After reading the above information, we hope that making a decision will be simpler for you! Please share your choice with us in the comments section.