We Will Make It Nearly Impossible to Buy Imported Cars: Miftah Ismail

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.