KARACHI – The capacity utilisation in automobile industry of Pakistan is very low, at around 40 to 50 percent. The major problem is smuggling of cars and their spare parts into the country that is giving tough time to local manufacturers and making it difficult for them to increase production and improve their share in local market, a Japanese trade organisation official said here.

“The protection provided to car industry has already been offset by smuggling of vehicles and their spares in bulk, which is badly damaging government revenue as well as ruining local automobile industry, ” said Director General Japan External Trade Organisation (Jetro) Karachi Office Yasufumi Kiuchi in Karachi.