The coalition government has received serious criticism from the people and the economic analysts of Pakistan for their inability to stabilize the economy.
They have also denounced the government’s recent decision to open letters of credit (LCs) for the import of luxury cars. A tweet from a renowned economic analyst Ali Khizar has shed some light on the situation.
Khizar tweeted:
65 cars are confirmed for the first batch (on January production) for delivery in March. LCs for 45 cars are opened, and remaining 20 in process.
100 plus more cars are booked for second batch (for production in March). And they company is eagerly taking more bookings.
— Ali khizar (@AliKhizar) January 7, 2023
Some sources also claim that the government has allowed the import of over 160 Mercedes-Benz luxury vehicles, although we haven’t received verification of those reports.
Recently, the State Bank of Pakistan (SBP) also eased the import sanctions on Completely Knocked Down (CKD) kits for local car assemblers.
In an official notification, SBP stated that the central bank has decided to undo the import restrictions from January 2, 2023. The decision is to allow for the acceptance of import requests already filed with the SBP.
The removal of import sanctions will enable car companies to reinvigorate their production and sales, provided they don’t increase the prices further. Although, analysts are questioning the wisdom behind this decision amid the ongoing economic meltdown.
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What more can be said about the priorities of this government, they are here to serve themselves and their friends, the common people are treated like 3rd class citizens who have no rights.
Shows seriousness of govt
While books, food items, medicines, pacemakers etc. are waiting on ports because of LCs not opening but the wise decision makers are allowing imports of luxury cars.
Durr fittay monh tuwada.
No car in CBU condition should be allowed for import in Pakistan, at least for 2–3 years or till the time our economy is bad, unless the entire amount is paid by the overseas Pakistani, as per Customs rules. Additionally, amount of the custom duty & other taxes etc should also be remitted in foreign currency for clearance of the car at port.
No exemptions should be granted to any one for import of any car or any thing which could be considered as a luxury item.
For the import of cars in CKD condition all the auto manufacturers in Pakistan should be asked to strictly follow the deletion program as part of import substitution and for this purpose proper timeframe should be given to all the manufacturers. All the manufacturers should be asked to add number of components every year for local manufacturing.