During the first four months of the current fiscal year, car imports have fallen by a staggering 53% and in monetary terms, imports have fallen from $245,430 million to $108,350 million, with a huge $137,080 million decline.
While this is a good thing for the overall trade deficit and the economy, it isn’t that good for the car dealers and the transport sector of Pakistan. From July to November 2019, CKD (completely knocked down) and SKD (semi-knocked down) units saw their imports fall to $92,229 million from $205,041 million, a decline of 62.69% as compared to 2018. In the case of CBUs (completely built units), their imports fell from $36,805 million to $12,588 million, a decline of 67.45% compared to the same period in 2018.
Buses, trucks, and other heavy-duty vehicles saw their imports decline to $6,932 million from $10,287 million, a fall of 40.94%. This substantial decline has negatively impacted the transportation sector as these vehicles aren’t being produced in large numbers locally. Furthermore, the customers have a lot fewer models to choose from when it comes to the local-made ones. Vehicles like these are necessary for the sector to ensure speedy transportation of raw materials and finished goods. Buses are also needed for commuting between cities for work, education, or leisure.
The second-biggest dip was in the import of cars when compared to the last fiscal year. They fell to a mere $5,553 million from $26,300 million, a decline of 77.70%. Motorbike sales declined from $218 million to $103 million, falling 82.11% during the period.
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