so we are just going to let the mafia run its corruption till end of time?
Hon Sir,
Unfortunately in Pakistan, instead of putting the blame on the bad policies formulated by the incompetent governments, we blame the people who make a lot of money by taking advantage of the policy. For example if PTI gov’t had not allowed export of sugar, the so-called ‘Sugar Mafia’ could not have made billions of rupees in profit. But the PTI Gov’t is blameless and the Sugar mill owners are guilty! If the car assemblers are milking money, it is because GOP policies allow them to do so.
Our media has started applied the label ‘Mafia’ to anyone they like to associate with the alleged criminal activities. For example there are nearly 80 sugar mills in Pakistan but it is called Sugar Mafia, you are calling the three car companies as Mafia. The proper word is Cartel. The size of the Pakistani market is small, that's why there are few companies; if & when the market increase to say about 250K cars per, you would that number of car companies would also mushroom.
Everyone must realize that all entrepreneurs go into business with only one objective, to make money. It is the GOP’s job to ensure that the profit margin remains within limits. Breaking up cartels in Pakistan would not solve Pakistan’s problems. ZA Bhutto broke up the 22 family’s cartel by nationalizing nearly all of the industry; did it make Pakistan progress more? Instead it killed off the investment in Pakistan for nearly 30 years. If the assembly plants are closed off, it will the car importers who will start making money, how would it benefit the country?
Cars in Pakistan are no doubt expensive especially after the fall in the value of Rupee. This was evident when during 2018-2019 (before the Covid-19) annual car sales dropped to about 50 K compared to more than 100K during the previous year. The real reason for the cars being expensive in Pakistan is because nearly every part is imported and simply put together in Pakistan. The price of cars will come down substantially when we start manufacturing most of the parts and also use the locally made metal sheets for the body.
However there are two impediments to this strategy; firstly, unlike India & China, we may not have the capability to manufacture the car parts of the same quality. Secondly, it is in our DNA that “rightly or wrongly”, we consider items manufactured in Pakistan being of lesser quality. Hence cars assembled from Pakistani made parts may have problems finding buyers.
Finally, do we want to produce /assemble cars, trucks, and other automobiles in Pakistan or simply rely on imports till kingdom come? Assembly not only provides jobs to fellow Pakistanis it also increases the pool of skilled labor and saves the country foreign exchange. In view of this, please tell me, is ‘Zero’ sales of locally assembled cars a reason for jumping with joy or crying over the state of the economy?
The problem is that many of my compatriots are easily swayed by media sensationalism. Why are you so incensed at the alleged profits that you seem happy that no one is buying cars? Do you think that the parent companies like Toyota would make less ‘Profit’ if these plants are shutdown cars were imported fully assembled?
