Pakistan announced a ban on imported cars on Thursday. This decision has been taken to revive the economy and the ban is not limited to cars, it extends to a variety of luxury items. The motive is to save the previous foreign exchange as said by Minister Shehbaz Sharif. Let’s take a look at what is happening:
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Economic Crisis
Pakistan is going through an economic crisis right now and it has observed its foreign exchange reserve taking a huge dive in the recent weeks amid crucial payments & debt servicing. The foreign exchange reserves have gone to an all-time low since June 2020. To handle the situation they are in contact with the IMF: International Monetary Fund to get a $6 billion loan to get some immediate relief and revive the economy.
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Overall Import Ban
10 cars sold in Pakistan
After Prime Minister Shehbaz Sharif announced the import ban on Twitter it was later confirmed by the information Minister Marriyum Aurangzeb. She said that this move will help to “save the country precious foreign exchange” & the following:
“We will practice austerity and financially stronger people must lead in this effort so that the less privileged among us do not have to bear this burden inflicted on them by the PTI government,” the prime minister tweeted, adding that the nation would overcome these challenges with “resolve and determination.”
Also Read: 10 Cars Sold In Pakistan That India Misses Out On
This import ban covers all non-essential luxury goods such as cars, smartphones, home appliances, furniture, cigarettes, dry fruits & weapons under the emergency economic plan. The information minister also said that the PML-N: Pakistan Muslim League-Nawaz premier was “working day and night to stabilize the economy”. She also said that their local industry could also benefit from this plan. Another source says that this ban could save up to $250 million every month.
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Absence of a thriving automobile industry
10 cars sold in Pakistan
Pakistan doesn’t have a booming automobile industry like India and they are majorly dependent on imported vehicles from across the globe. They import from brands such as Suzuki, BMW, Mercedes, Audi, and many more.
Also Read: 5 Cars Exported From, But Not Sold In India!
There is also a massive market for used import cars which has witnessed a great spike in sales recently. According to their statistics, the import of cars through the CBU had increased by 50% between July & March this year, while the import of cars jumped to 158% in FY21.
