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.
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.