Will Pakistan's Bubble Burst?

Further reductions on import duties have ensured that Pakistan's domestic automotive sales continue to register double-digit growth. Though not as rapid as the 32% posted in FY2004/05, sales for FY2005/06 rose by 19%, although BMI suggests in its recently published "Pakistan Automotives Report" that growth will return to single digits in FY2006/07 and beyond. Indeed, BMI expects sales to rise by only 17% over the next five years, based on fears of a bubble burst scenario following a consumption boom. Production, which grew by 23% in the last financial year should also be around the 300,000 units mark by 2010,

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