Currently, the biggest problem facing the Pakistani automobile industry is the scarcity of the US dollar. Due to this problem, State Bank of Pakistan (SBP) does not issue LC to automobile companies for import of CKD kits. As a result, the auto industry is at a virtual standstill as companies face repeated production disruptions. But on the other hand, the import of luxury cars, electric vehicles (EVs), and even heavy duty bikes seems to be continuing.
In the case of electric vehicles, the government ended the regulatory duty (RD) on their imports in November 2022. Following this decision, many media reports and economists highlighted that electric vehicles parked in Dubai were immediately granted import permits. Experts believed that over 300-400 EVs will be introduced within these two months.
CBUs (including luxury cars & bikes) imports in Dec -22— Ali khizar (@AliKhizar) January 19, 2023
23 Land cruisers and Lexus
20 EVs – mostly E-trons by Premier Motor
18 heavy bikes including BMW Motorrad and Harley-Davidson
Over 300 used cars – including VItz and Vessel
Imports of Luxury Cars and EVs
And a recent tweet by economist, Ali Khizar, proved this indication correct. According to Khizar, “23 Land cruisers and Lexus and 20 EVs – mostly e-tons have been introduced in December 2002.” Meanwhile, talking about the bike, he wrote 18 heavy bikes, including BMW Motorrad and Harley-Davidson, were also cleared last month.
“Last but not least, it was concluded that over 300 used cars – including Vitz and Vessel were also imported during this period,” he concluded.
Amidst this difficult problem for the auto industry and the country as a whole, clearing such expensive cars for import makes little or no sense. Because on the one hand the government tells the local car assemblers that there is no dollar for LCs, while on the other hand the importation of such vehicles continues, resulting in only one question, how? and the second question why?
Hopefully, the situation will improve for the auto industry in the coming days so that production and sales can be in full flow. And SBP and Govt need to check their policies on this especially import of luxury cars.
What do you think about importing luxury cars in Pakistan despite the difficult situation? Share your thoughts in the comments section.