KARACHI: United Auto Industries has announced raise in prices of motorcycles due to increase in cost of production.
According to a notification shared with dealers, the company had no other option but to increase the prices due to prevailing economic conditions.
The company further stated that cost of production had been increased due to rise in prices of raw material and massive depreciation in rupee value against the dollar.
According to updated prices, the retail price of United 70cc motor cycles has been increased by Rs3,000; front portion models 100cc by Rs2,000; all models 100cc by Rs3,000; and United Motorcycles 125cc by Rs5,000.
The company said that the new prices would be effective from April 11, 2023. However, old rates will be applicable on payments made by April 10, 2023.
Pakistan has been facing a number of economic challenges for several years. These challenges include high levels of inflation, a large trade deficit, and a high debt burden.
One of the key drivers of Pakistan’s economic woes is the country’s trade deficit, which has been widening in recent years. Pakistan imports more goods than it exports, resulting in a significant drain on the country’s foreign reserves. Additionally, the country’s exports are heavily reliant on a few key sectors, such as textiles and agriculture, which makes the economy vulnerable to external shocks.
Inflation has also been a major issue for Pakistan, with prices for basic necessities like food and fuel rising rapidly. This has put significant pressure on the purchasing power of ordinary citizens, especially those on low incomes.
Finally, Pakistan’s debt burden has also been a major concern, with the country owing billions of dollars to foreign lenders. The government has had to borrow heavily to finance its budget deficit, and servicing this debt has become increasingly challenging.
To address these challenges, the government of Pakistan has implemented a number of economic reforms in recent years, including reducing subsidies, increasing taxes, and seeking financial assistance from international lenders like the International Monetary Fund (IMF). However, the road to economic recovery is likely to be long and challenging, and significant progress will require sustained commitment from the government and the wider population.