Following the reinitiation of business activities in the automotive sector of Pakistan after the pandemic induced lockdown, a significant rise in the demand for vehicles was observed in the 2nd half of 2020. Following the recovery of business activity and demand, the import bill reportedly also went up by 194% between July and December of 2020.
As per a media report, the import bill went up from $32 million in the 2nd half of the 2019 calendar year to $93 million in the 2nd half of the 2020 calendar year. The rise in the import bill is also being attributed to the advent of newcomers in the market. The report states that the recent import of cars in the Complete Built-up Unit (CBU) form also added to the import bill by a significant degree.
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The report further states that overall vehicle imports witnessed a 55% drop in the financial year 2020 because of the restrictions imposed by the government to curb the outflow of local currency and encourage the sale and purchase of locally assembled cars, especially the new entrants within the country.
Discussing the matter with a mainstream media outlet, a representative of a car assembler highlighted that the government has awarded quotas to the new entrants so as for them to introduce new cars in Pakistan. He added that the reason for a significant increase in the demand for vehicles is due to the decrease in the interest rates and other positive economic indicators.
Via: Dawn News
