BMI remains cautious on the near-term outlook for new car sales in Pakistan in 2013, with a variety of negative factors informing our view. However, the longer-term picture holds more promise. To look at the near-term outlook first, we believe that the budget for FY2013/14 is unlikely to provide any support to auto sales, which remain mired in a downtrend due to weak demand. Overall, we believe that the budget can be broadly seen as a mixed bag. It outlines a broad trajectory of fiscal consolidation for the next fiscal year and includes austerity measures, which we believe will continue …
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