The government has decided to ban the import of luxury commodities, including cars, in order to stabilize the economy, according to Maryam Aurangzeb, leader of the Pakistan Muslim League Nawaz (PMLN).
She claimed that Pakistan’s economy is in bad shape and that the government has devised a strategy to prevent it from collapsing. She suggested that people put their wants for fancy objects aside in order for the country to survive these difficult times.
She stated that the import ban would save Pakistan up to $500 million per month and $6 billion annually. Maryam went on to say that the import of luxury vehicles is a significant contributor to the rising import bill, which has caused the local currency to depreciate.
Analysts are concerned that Pakistan’s economy is on a collision course, which could signal doom for a variety of businesses.
According to Dr. Akmal Hussain, a famous economist, the total cost of completely built-up (CBU) vehicle imports in 2020–21 was $1.53 billion, an increase of 80 percent over the previous fiscal year.
According to the new government, imports of Completely Knocked Down (CKD) kits for autos and mobile phones have also been added to the import bill. As a result, the Ministry of Finance has proposed a 100 percent increase in the regulatory charge (RD) on cars with engines larger than 1300cc.
To solve the problem, the government has decided to impose import restrictions on CKD. These developments portend disaster for the Pakistani automobile sector and consumers.