Over the past two and a half months, the coalition govt has said that it will stop letting luxury items into the country. On a long list of products, which also included CBU vehicles, there were cars. The Govt rule that stuck people from buying luxury items is taking away, except for cars and portable electronics.
The government says that the growing use of cars and cell phones in Pakistan is to blame for a lot of the country’s rising import costs. Officials from the government say that most of the prohibitions don’t have a big effect on the country’s foreign currency reserves.
Restriction on CKD Import
The price of importing completely struck (CKD) kits has hit a new record high of $1.7 billion. From $1.11 billion in FY 2021 to $1.52 billion in FY 2022. The total amount paid for imports went up by 52 percent. Even though inflation became gone up and the State Bank of Pakistan already has put limits on auto loans. Increase still happening (SBP).
Pakistan’s growth in the auto industry is good news, but the country’s current account deficit is a problem. Experts think that the arrival of companies that make new cars but can’t get the parts they need to create in Pakistan is bad for the economy of Pakistan.
Read more: The Kardashians dislike the new Instagram
Before they can start bringing in CKD kits for their cars. The automakers have to wait for the SBP to approve the Letter of Credit (LC). Delays in approving imports of cars are done on purpose and are meant to protect the country’s foreign currency reserves. Which all kinds of imports bother.