Car Industry Begs Govt to Change Used Car Policy to Improve Their Sales

The auto vendors have asked the government to revisit import of used cars policies during the upcoming budget as the import of used cars has caused over Rs. 50 billion in losses to the country’s economy during the first eight months of the current fiscal year.

According to data, the used vehicles soared to 25,000 units, marking a staggering 641 percent increase during the first eight months of the current fiscal year, compared to last year’s 3,386 units imported.

The representatives of the local auto industry told ProPakistani that the local automobile sector is suffering due to the government’s decision to allow the import of used and unregistered vehicles.

They argued that the government consistently fails to safeguard local industries, despite these industries benefiting from billions of dollars in foreign investments and providing employment to over 5 million workers.

Industry representatives revealed that the import of used cars has caused over Rs. 50 billion in losses to the local industry and econ
omy during the first eight months of the fiscal year 2023-24 alone.

Initially intended for overseas Pakistanis, the allowance for used car imports has been exploited through corrupt practices, with vehicles imported in their names for profit-making ventures, claims the industry.

The document highlights that favorable taxation and duty policies towards used car imports have also played a part in crippling the local assembling industry, leading to reduced demand for domestically assembled automobiles.

The automobile manufacturers are also concerned that grey channel transactions for used car imports pose a significant threat compared to legal transactions for local manufacturers, resulting in potential revenue losses for the economy.

Furthermore, despite an unwavering resolve to manufacture a substantial portion of car parts locally, unfavorable policies have led to inefficient production facilities, job losses, and a lack of motivation to boost the local industry.

According to industry suggestions, the go
vernment should immediately discourage or regulate used car imports to support local industry growth and competitiveness. Besides, policymakers should engage in creating mutually beneficial policies that foster industry growth and job creation.

Furthermore, relevant authorities need to implement consistent policies that enable the local industry to thrive and contribute positively to the economy.

Pakistani automobile manufacturers asked the government to protect millions of families from unemployment, it said that even with 13 local manufacturers and assemblers and thousands of used import cars, the segment is still out of reach of the common man due to skyrocketing taxes and duties.

A consistent and favorable policy to encourage the local auto industry enables it to become more productive towards boosting the industry. Compared to the local manufacturing industry, the import of used cars does not employ many people.

The import process involves a few people, often from the same family, with one sitting in
Japan and the other sitting in any Pakistani city engaged in a black market business that only seeks to serve the luxury lifestyle. On the other hand, local car manufacturers are a valuable economic asset of our country.

Source: Pro Pakistani

PM Shehbaz Orders to Elevate Status of Gems, Precious Stones Industry

Prime Minister Shehbaz Sharif demanded to give regular industry status to Pakistan’s gems and precious stones sector and called for the immediate commencement of operations of the Pakistan Gems and Jewellery Development Company.

Chairing a meeting at PM House on Wednesday, Shehbaz urged the development of Pakistan’s gems and precious stones industry. He highlighted the untapped natural resources in Khyber Pakhtunkhwa, Gilgit-Baltistan, and Azad Jammu and Kashmir.

The premier emphasized the need for international certification of local precious stones and adequate representation in global exhibitions.

PM also instructed the initiation of legislative processes to promote the industry and the commencement of training programs for value addition in the gemstone sector. He stressed the importance of consulting with the private sector and provinces for sector development and called for geological mapping in the resource-rich regions.

The meeting also included detailed briefings on investment strategies and the
need for mapping in key areas.

Source: Pro Pakistani

Gold Price in Pakistan Drops Slightly But Remains Near Rs. 250,000 Per Tola

The price of gold in Pakistan declined marginally on Wednesday to close at Rs. 248,200 per tola.

According to data issued by the Karachi Sarafa Association, the price of gold (24 carats) dropped by Rs. 300 per tola to Rs. 248,200, while the price of 10 grams fell by Rs. 236 to Rs. 212,791.

The Sarafa Association said in a brief statement that the price of gold has been kept under cost by Rs. 4,000 considering the significant reduction in purchasing power of the public.

The price of the precious metal had begun the new week with an increase of Rs. 2,300 per tola on Monday, however, the price fell by Rs. 1,900 per tola yesterday after international prices declined.

In the international market, spot gold slipped by 0.3 percent to $2,413.96 per ounce as of 1127 GMT.

Source: Pro Pakistani

CCP Takes Notice of Dangerous Stunts in Adverts of Energy Drinks

The Competition Commission of Pakistan (CCP) has taken notice of extremely dangerous stunts performed in the TV Commercials (TVCs) of leading beverage manufacturers.

These stunts promote soft and energy drinks without advising viewers not to attempt similar stunts independently on their own, as they have been performed by professional experts under proper safety arrangements and are fictional displays.

The Commission has issued letters to various beverages firms to explain their position vis-à-vis showcasing physical stunts with bikes, cars and other extraordinary performances enabled by or for a few sips of the advertised drinks.

While, screening of such stunts is not a violation of Pakistan’s Competition Law, the absence of proper disclaimers advising viewers to avoid attempting such stunts amounts to withholding material information from their consumers, especially young adults.

CCP has warned these companies of their potential violation of Section 10(2) (b) of the Competition Act, 2010. This section
prohibits the dissemination of false or misleading information to consumers. The non-disclosure of material information or relevant disclaimers also amounts to deceptive marketing practices and constitutes a violation of this section.

The Commission has explained that ‘misleading information’ refers to statements that can give a wrong impression, lead to errors in conduct, thought or judgment, misinform due to vagueness or omission, and may not necessarily be deliberate. It further clarified that ‘false information’ includes statements that are contrary to truth or fact, imply conscious wrongdoing or culpable negligence, have stricter and stronger connotations, and are not readily open to interpretation.

The CCP has directed the companies to explain their non-compliance with the explicit provisions of Section 10 of the Competition Act, 2010, regarding the subject TV Commercials. The companies are required to furnish their explanations within seven days of the issuance of the Commission’s letters.

Pro Pakistani

Pakistani Can Maker to Incur Heavy Export Losses Due to Disruptions At Pak-Afghan Border

Pakistan Aluminium Beverage Cans Limited (PSX: PABC) expects to incur an impact on its revenue from exports to Afghanistan due to logistical disruptions at Chamman, the can maker informed the main bourse on Wednesday.

‘Due to ongoing security issues at Chamman, we are experiencing logistical disruptions and a shortage of vehicles for our exports to Afghanistan, which may impact revenue from Afghan exports,’ the stock filing stated.

It added, ‘Coupled with the near 25 percent YoY decline in local order bookings, we expect a negative impact on our order bookings during the peak season’.

PABC has been listed on the Pakistan Stock Exchange since July 16, 2021. The principal activity of the Company is the manufacturing and sale of aluminium cans. The Company completed the installation, testing, and commissioning of its manufacturing facility at Faisalabad Special Economic Zone and commenced commercial operations in September 2017.

At the time of filing, the company’s scrip at the bourse was Rs. 63.61, down 5.
34 percent or Rs. 3.59 with a turnover of 366,169 shares on Wednesday.

Source: Pro Pakistani