A study published by Pitad Pakistan says, imported used vehicles are killing Pakistan’s local car industry and there is a serious need to make long-term policies to save the local industry.

The Pakistan Institute of Trade and Development (Pitad) has published a study on the situation of local car industry in Pakistan. In the study, Pitad has seriously criticized the imports of used cars from UK to Pakistan and from other countries of the world. Pitad discourages the imports of used vehicles to Pakistan and also laid stress on the policy making for the long-term regulation of used cars imports. Study said that it is very important to re-regulate the imports of cars to save Pakistan’s local car industry.

The Pakistan Institute of Trade and Development (Pitad), in a recent study, has discouraged the import of used vehicles and laid stress on long-term policies for the stability and growth of domestic automobile industry. Pakistan’s automobile sector is very weak and it could not compete with international players without government support.

There is a strong need for institutionalizing an industry focused policy as the imports of used cheap cars is growing with every passing day. It is massively damaging the local industry structure. The auto manufacturers like Honda and Toyota in Pakistan are working at their half capacity because of lower demand of new cars in the market.

Pitad is focusing on the policy research in Pakistan and the chief researcher of the report said that it will discourage investments in the industrial infrastructures, reduce employment opportunities, effect the GDP of Pakistan and definitely the economic growth of Pakistan.

A worker at Atlas-Honda cars said that the company is using its less than half resources and we are working even less than 40 hours every week. Imports of used cars have directly impacted our employment and cut more than 30 hours from our job timings. If the import of used cars continues, soon the company will be forced to downsize.

Pitad recommended that the Government has to put a halt on imports of used cars.