What Is The Reason For People To Buy Highly Priced Cars?
Pakistan infrastructure has always been poor
Pakistan infrastructure has always been poor. In the recent years in spite of billions spent in Karachi and Lahore, the infrastructure cant coop up with mad rush of cars and motor bikes on the city roads.
In Lahore, in the recent years there had been a lot of improvements on the city roads. The Canal bank road, Lahore Ring road and Tameezu Din Roads are only few visible examples.
If one wants to see the manifestation of uncontrolled traffic, Emergency and Neurology Wards in the General Hospital on the Ferozpore road is the place to visit.
The MS and other doctors commented that this hospital alone receives 70 to 100 road accident emergencies daily, mostly head injuries.
This is an alarming number and the Government as well as civil society must take cognizance of the state of traffic on Lahore city roads.
Increasing number of cars and motorbikes on the roads, inability of the city government to keep up pace with the ever increasing traffic, drivers licensing policy and lenient ticketing policy and cost of traffic violations are the reasons for the choked traffic and loss of valuable lives on the roads.
In the absence of sound economic and taxation policies and the vested interests; Pakistani manufacturers of automobiles will continue to cause hardships to the consumers. Textile not Automotive Industry needs State protection, textile, which is the main stay of Pakistan domestic as well as export market, is going down due to the energy problems. Why should the Government protect Automotive Industry? It is unjustified and they are charging high rates of profit and encourage dealers to charge premium on their units.
What is the reason for people to buy highly priced cars? Five years back people invested blindly invested in real-estate. With no investment avenues and ever decreasing price of PKR, investment in commodity like gold and cars is on the rise. Bank financing is easily available and anyone with a down payment can own a car. It is the market (demand and supply), Government policies (to protect local car manufacturers, bank finance which is pushing the prices up.
It is the market (demand and supply), Government policies
It is easy to get a driving license. There is no system to hold fair written and road tests. It is not that Public Safety offices cant be organized with the fee paid by those who want to get a license; it is the system which doesnt understand and implement public safety.
Public safety is an important function of the Government and it should not be handled by the police. Offices at convenient locations should administer written test. These tests should be conducted by computers to avoid short cuts. Anyone with high school education should be able to handle simple computerized test given in Urdu.
Those who pass the written test should be tested by qualified road safety driving testers. The test, conducted in the vehicle of the candidate should include parking, reversing, driving on the city roads , adherence to the displayed speed limits and other signs, lane changing, stopping etc. License should only be issued after a candidate pass examination both written as well as road test.
Traffic ticketing is either lenient or it is inexpensive. Records of traffic violations are not entered on the violators license. There is a need for strict legislation and implementation of the traffic laws.
The Government should have a liberal import policy both for the new and used cars. The prices of locally manufactured cars will never come down unless there is a free import policy. As far as the foreign exchange is concerned, it should not cause a burden on the State Bank as expatriates will finance imports of new and used cars and spare parts.
Autos Pak which is the largest web advertiser in automobiles in Pakistan is of the opinion that the market can only be controlled through fair competition and de-regularization of the imports of new and used cars and the public safety can only be ensured through strict legislations, licensing and implementation.
by: David Parker II
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