Compared to the minor benefits, as stated by the writer, there are a host of disadvantages of importing automobiles that can adversely affect the industry specifically and the economy of the country generally.
For instance, when the local manufacture of cars has decreased in number due to the non-viability of production as compared to imports, the manufacturing units would necessitate less man power, thus decreasing the level of employment in a country where unemployment is a major economic affliction.
Moreover, the rate of technology transfer would also decrease, making our country a mere trader of automobiles rather than having the competence and advanced technological capability in the field of manufacturing.
Accessibility of spare parts will decrease and the ones that will be available will be charged at a higher price as the range would be diverse, yet the stock would be limited.
This is so because it is expected that there would be a larger range of models of automobiles available rather than a larger stock of the same model.
This will have a negative impact on the service and spare parts industry and maintenance of vehicles will become an expensive and inconvenient effort for the buyer.
Such factors would lead to a higher level of tax evasion in the country as the imported cars would be of a higher price and therefore be more costly to the end buyer. Such high costs will also escort higher profit margins for the importers and the practice of under invoicing will become common.
Under the current economic scenario, it is the under invoicing of auto parts that is continuing to acutely affect the local auto industry. With the practice being common, the auto vendor industry will endure losses.
Contrary to the government's expectations of a positive impact through duty reduction on the import of new and used cars, Pakistan has already begun to face the repercussion of the government's inconsistent policies.
Neither in the long term, nor in the short term, the Pakistani market, as an international dumping ground for used and reconditioned vehicles, is in the interest of either the consumer or the country.
Here is what needs to be done. First and most importantly the production of all car manufacturers needs to be increased. Capacity expansion of an auto plant requires heavy investment. The government needs to formulate long-term and stable auto policies encouraging investment in the auto sector.
Without a clear and long term auto policy, new investment by the auto manufacturers will be difficult, especially since other countries in the region are also witnessing unprecedented growth in auto demand and have less country risk with better law and order, better infrastructure, lower operating costs, skilled engineering and vendor industry.
Secondly, the government needs to formulate legislation to stop non- genuine customers from booking cars.
If the government is sincere in making Pakistan an economically independent and strong nation, it has to develop the engineering industry of the country and the auto industry has a major role in this regard.