Federal Minister of Finance Miftah Ismail has announced the removal of the import ban on luxury and non-essential items including Completely Built-Up (CBU) cars.
However, the government will likely increase Regulatory Duty (RD) on such commodities by several hundred percent. Miftah stated that the purpose of the RD hike is to discourage the import, sale, and purchase of imported luxury cars.
He stated:
We will impose such heavy duties that these items cannot be imported [easily] or at least in their finished form. I don’t have enough dollars, so I will prioritise cotton, edible oil, and wheat. I do not prioritise Iphones or cars.
Miftah has clarified his intentions to restrict the influx of imported cars, which spells trouble for certain companies.
Toyota Indus Motor Company (IMC), Pak Suzuki Motor Company (PSMC), Honda Atlas Cars Limited (HACL), Kia Lucky Motor Corporation (KLMC), and Hyundai Nishat Motors Private Limited (HNMPL) in particular have certain CBU imports in their lineup that may witness a massive price hike.
Morris Garages (MG) on the other hand, is only selling CBU vehicles so far, which places it in deep peril. Other companies such as Audi, Porsche, Mercedes-Benz, and BMW will also see a major price bump, which may impact their demand.
The government demands complete indigenization of cars while the industry demands a consistent policy that enables localization. Meanwhile, due to the import-driven car industry, the economy continues to suffer.
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Why not they improve the quality and prices of local industry. No any check and balance. They are selling cheap quality teen dabba since many decades and still importing many parts. Govt is just trying to hide their failure by applying huge taxes, duties and ban on imported cars. Might ne possible they took bribe from local auto industry to support them.
imports of cotton, edible oil, and wheat are to be preferred? I thought we were agricultural country… :/
We would never saw this phase if we emphasized on real local industry where every single thing is made we have biggest reserve of iron still we can’t make our own car or even bike
biggest reserve? seriously? Did you bother to do some research?
There Miftah goes again, taking pot shots at the rich because they are an easy traget. It was about private jets earlier now its about imported cars. He’s doing this to sound humorous and thinks its populist. Imported cars is not the problem, the lack of manufacturing anything worthy of export due to failed policies, thick red taped bureaucracy, lack of education and skills is. Talk about the real problem than taking pot shots at the rich.
As if toyota, honda, Suzuki etc are Pakistani brands.
I hope he himself doesn’t own an imported car
He has done the right thing …we should not even let them have thier parts even …pak is a huge market …we can build our own cars govt should promote local brands