Government of Pakistan has announced to impose a brief ban on completely built units (CBU) of imported vehicles from January to June next year.
As per some reports, government has also decided to jack up additional customs duty and regulatory duty on 10 to 12 other luxury products to the country’s current account deficit in control.
The decision will eventually result in curtailment of government’s import bill to more than $3 billion on yearly basis.
Pakistan’s current account deficit (CAD) had reached $5.1 billion from July to October of the current fiscal year 2021-22 against $2.3 billion. But the most worrying aspect is that the CAD might cross the $15 billion benchmark for the current fiscal year. The economic experts are conducting meetings with important stakeholders including ministries/divisions to consider steps for clipping the CAD.
Meanwhile, Prime Minister’s Advisor on Finance and Revenues, Shaukat Tarin has ordered the tariff board to forthwith conduct its meeting and give approval on imposing a temporary ban on CBUs of cars and hiking regulatory duties and addition customs duties on a few other chosen luxury products.
Earlier, it was ascertained that the Prime Minister’s Office gave orders to impose a ban on 10 luxury items but the ministries opposed the decision, saying it might cause backlash from the World Trade Organisation and some mutual trading partners.
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