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Import Bill for Locally Assembled Cars Reaches All-Time High

The import bill for completely knocked down (CKD) kits has reached $1.7 billion, marking a new record. Compared to $1.11 billion in Fiscal Year (FY) 2021, the import bill has increased by 52 percent.

The sales also increased by 55 percent in FY 2022 to 234,180 units. Interestingly, the increase took place despite a gradual rise in inflation and restriction on car financing by the State Bank of Pakistan (SBP).

While the auto sector’s growth is a promising development, it certainly raises concerns about Pakistan’s foreign exchange reserves. Experts say that the launch of new cars from automakers with scarce localization is also damaging Pakistan’s economy.

As per a report from May 2022, the localization rate of some of the most popular cars in Pakistan is as follows:

  • Suzuki Swift — 35 Percent
  • Suzuki Cultus — 51 Percent
  • Suzuki Wagon R — 60 Percent
  • Suzuki Alto — 62 Percent
  • Suzuki Bolan — 72 Percent
  • Toyota Corolla — 65 Percent
  • Toyota Yaris — 65 Percent

Industry Notion

Experts reckon that the import bill will rise further if carmakers don’t start producing more parts locally. Mehran Commercial Enterprise Director Mashood Ali Khan told Dawn that a lack of localization is due to the government’s policies for the auto sector.

He implied that the policy is a double-edged sword as it allows the introduction of new models but ignores the importance of localization. The high prices, interest rates, SBP restrictions, and dollar depreciation is likely to undo a lot of the progress in the Pakistani car industry, Khan feared.


  • Despite higher prices the sales also increased for a product which is used by the fraction of population which reflects the mafias long hands, corruption and black economy of the country


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