Car prices to be fixed in Pakistan under new regulatory body

Car prices

The government is considering establishing a price regulating board to determine car prices in order to break the automakers’ dominance.

According to media reports, automakers promised the government that they would not raise vehicle prices as a result of a reduction in industry taxes in the budget for fiscal year 2021-22.

However, they did not keep their word and raised car costs, which displeased the Ministry of Industries and Production.

Furthermore, officials highlighted that automaker had continued to take “own money” from customers in exchange for quick delivery of new vehicles.

Read more: Government mulls fixing car prices in Pakistan

They disclosed that in August 2021, the Ministry of Industries was expected to submit an auto policy for review to the Economic Coordination Committee (ECC). However, it was forced to postpone the announcement of the policy due to a rise in car costs by the manufacturers.

According to sources, the ECC discussed a draught of the proposed auto policy at its meeting on December 10. The ECC’s technical advisory committee, on the other hand, advised that the subject be postponed. Following that, the ECC postponed the policy review.

The Ministry of Industries was also concerned with the Engineering Development Board (EDB), which it considered was not doing enough to protect customers, according to sources.

According to officials, a proposal was recently circulated that urged the formation of a price control board comprised of representatives from the Ministry of Industries, the EDB, and the auto sector to make decisions on price adjustments.

According to them, the minister of industry requested that relevant officials in his ministry consult with the Law Division on the suggestion.

The EDB, on the other hand, was against the establishment of the pricing regulatory board as EDB currently regulates domestic industry, including automakers.

Most Popular

To Top