Why are car prices rising in Pakistan?

• Ministry directs monitoring committee to carry out a forensic analysis of recent car price hike.
• Industry players inform ministry regarding causes of late delivery and production capacity.
• Federal secretary asks automotive industry to submit a localisation plan.

ISLAMABAD: The government on Thursday directed an automobile monitoring committee to carry out a forensic analysis of the recent price hikes in different models of cars across the board.

During a high-level meeting held under the chairmanship of the Federal Secretary for Industries and Production Jawad Malik, the members of the committee have been asked to appoint neutral professional experts for the forensic analysis, the report of which should be submitted within two weeks.

During the meeting, the ministry official sought an explanation from the committee for the recent price hike in different models of cars in the last few months.

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The meeting was told that the price hike came on the back of the following reasons:

• Constant depreciation of the rupee against the US dollar
• Increase in freight charges
• Rising prices of raw materials, including operational costs

The industry players further informed the ministry regarding the causes of late delivery and production capacity.

Malik also asked the automotive industry to submit a localisation plan with a time frame as well as safety features compliance report to the ministry.