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Germany is Not Happy With Pakistan’s Ban on Import of Luxury EVs

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German Ambassador in Pakistan, Alfred Grannas, wrote to the Federal Minister for Economic Affairs Division (EAD) that the State Bank of Pakistan (SBP) is refusing to open letters of credit (LCs) through commercial banks, threatening EU-origin electric vehicle imports.

The letter shed light on the difficult situation for the official importers of Mercedes-Benz, BMW, and Audi in Pakistan who deal in electric vehicles (EVs). It argued that the EVs are beneficial to the environment, yet, the SBP wouldn’t allow them to be imported.

The German Ambassador added that a positive regulatory framework for EV imports is a big step. “Additionally, this promises to reduce Pakistan’s reliance on imports of petroleum products which are nearly $22 billion, out of the country’s total import bill of $72 billion approximately,” the letter added.

The Envoy wrote that Germany is Pakistan’s largest trading partner in the EU by volume and value. He expressed worry, stating that the LCs issue could cloud business relations between the two countries.

A Counter Argument

As per the analysts’ and economists’ opinions, the German Envoy’s argument is lukewarm at best.

It is a well-known fact that the only German EVs that exist in Pakistan are from high-end carmakers such as Mercedes-Benz, BMW, Audi, and Porsche. Each EV costs a fortune and takes a massive toll on foreign exchange reserves.

Pakistan is currently going through the worst economic crisis in history, with numerous local industries observing intermittent shutdowns. The enablement of foreign exchange outflow would only hurt the local industries and economy more.

With that in consideration, opening LCs for high-end luxury EVs is not at all a pragmatic solution.


  • We are also unhappy that Germany wants to sell us products but dont want to setup a single research and development center in Pakistan. BMW, Mercedez and Audi have research centers in India but they are investing Zero amount in research in Pakistan. Sorry Germans this is now how it works.

  • N how u think these high ranked officials of our pak and saaf army would travel after retirement or how their families would commute. Bro that’s typical DHA stuff, it would come and keep coming

  • Well said but if you recall history merc came to Pakistan around the time of Ayub khan they were asked what’s in for us then Macain Fries came in the 2000 onwards it was the same question to then they went to India
    I went to mirpur to give my mba papers in 1998 all small & large hotels & house ran India’s song’s & movie so we all have a default system flaw


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