100% Cash Margins Imposed on Mobile Phones, Vehicles and Other Consumer Products

State Bank of Pakistan has imposed 100% cash margin requirement on import of certain consumer items.

The requirement of 100% cash margin has been prescribed on items such as motor vehicles (both CKDs and CBUs), mobile phones, cigarettes, jewelry, cosmetics, personal care, electrical and home appliances, arms and ammunition etc.

State Bank expects that this regulatory measure would help accommodate incremental import of growth-inducing capital goods.

Central bank said that this regulatory measure is aimed at discouraging the import of these items and would have nominal impact on the general public.

For layman, to understand what this means: These items are going to get expensive with this new development, however it is too early to estimate the scale as of yet.

This also means that import of above mentioned items through illegal channels will increase. Not to mention, this will discourage those vehicle makers who were planning to enter Pakistani markets in next few months.

    • There is bad and one good side of it.

      Bad side:

      As Khi and Peshawar airports are heaven for illegal mobile carriers and probably the only big routes for imports of these mobile phones into the country….with this…illegal import will increase unless you keep a check on it.

      Good side:

      People will consider buying less expensive phones (Pakistani awam is rich though) and so even import of illegal phones will increase people will not buy them as these illegal importers will also increase their profit margins. So outflow of currency will be less (Q Mobile par guzara karna hoga aap ko).

      I would have appreciated if SBP could have reduced the foreign currency a Pakistani traveler can carry in cash from $10,000 to $5000 OR could have start a country wide campaign against Hundi in Pakistan OR if FIA starts questioning overseas Pakistanis to show proof of remittance transfers to Pakistan (to see legitimacy of transfer and to reduce hundi and black money outflow).

  • Central bank said that this regulatory measure is aimed at discouraging the import of these items and would have nominal impact on the general public. – Nominal Impact??? discouraging the import??? What the fun…??

    We don’t even own our language and we talk about technology!!! with our own production of Mobile (kesay) and only production of suzuki … “koi sharm hoti hay koi hayaa hoti hay” !!!

        • Nahi Bhai
          Chines Ne Baja K Rakhi Hai Industy Ki
          Jitni Bhi Chines Or Japanes Ki Under Main Ya Partnership Main Industry Chal Rahi Hai
          Wo Kisi Ghulami Se Kam Nahi : Khoon Choos Rahi Hai

          • The secret to their success is hardwork, agar aap iskay khilaaf hein to I really do not what to say.
            But as a nation we must also learn to work hard — what needs to improve is that we should get rewarded fairly for hard work.
            I believe it is better for us to be under Chinese ghulami any day than Indian, Isreali or American ghulami — after all what is worse?
            Malikon kay ghulam, ya ghulamon kay ghulam? We substituted the British for their ghulams — first we were living directly under the masters now we are worse than ever living under their ghulams!
            So for me, Chinese are welcome anyday — maybe they will take better care of us than our own ghulamee hukumraans!

          • Oh Bhai chor China ko uss ki kia galati? Bera ghark Kia Japan nay hamara Suzuki kachra bheck k. China nay kia kiya galat Jo itna dukhi ho. Hamesha mushkil waqt main sath dia Pakistan ka. Fazool propaganda na karo dost mulk k khilaf. Pakistani quom janti hai achi Tara Kon dost aur Kon dusman hai. Agar hamaray siyasatdan bik b jaian tuo Allah ka shukar hai army ki ankhain khuli hain…. Pakistan zindabad Pak army zindabad

            • I am Proffesinoal Industries Man : I know Chines In Mamale Main Kiya Karty Hai.
              Baki Kaam Apni Jagah Chines Ko UNKO SALAM Us K Liye but as a industrial in PAK :
              EMPLOYEE Ro Rahy Hai.

  • Isn’t decrease of imported vehicles good for new players if any? In any case this was bound to happen as import bill keeps increasing due to energy related project imports.

  • Ye Kun Sa LAW Hai
    Jo Traders Mangwate Hai Wo 100% Advance Payment Pe Mangwate Hai (Already Margin to Diya Banks Ko & after import wo evidence bhi jama karwaty hai)
    In case of Letter of Credit import wo bhi apna margin bank ko jama karwaty hai
    Ha Traders ko chahyeh wo Margin Jama Karwaye Manufacture ka tuk nahi bannta margin ka Q?k wo puri factory laga k baitha hai wo bhagny wala nahi.

    ProPK You should be get complete market information.

  • This corrupt government is enhancing every avenue of corruption and smuggling.

    Increased cost would be transferred to consumers and those who wish to remain competitive on lower margins would be encouraged to resort to smuggling instead of using legal channels.

    The way to discourage such things is to make legal methods easier to use and comply with but this corrupt government wants to encourage illegal means, bribery and corruption. After all, a self-confessed money launderer Ishaq Dar (Dollar beggar) is the country’s finance minister and the beneficiary of that money laundering (Panama Minister Nawaz Sharif) is the sitting head of government.

  • Which mobile phones are being manufactured in Pakistan? We don’t have a single semiconductor fabrication unit or the capability to make led screens but sure, we can manufacture our own mobile phones because…magic.
    The real reason for including mobile phones is probably because the government wants the commoners to go back to Nokia 3310 (which was only recently relaunched) so all the hassle caused by social media interaction can be curtailed ????

  • I dont understand the term ‘Cash Margin’. Can anybody please elaborate more? Is it same as Tariff on imports?

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