Nothing seems to be going right for the automobile market of Pakistan. After a deplorable slowdown in sales of local assembled vehicles, it has now been reported that car imports have sharply fell by 85% during first two months of current fiscal year.
The import of Completely Build Unit (CBU) cars fell to $9.46 million during July – August 2019 as compared with $61.88 million in the corresponding months of the last year, according to data released by Pakistan Bureau of Statistics (PBS).
The primary reason behind this is the restriction imposed by the ministry of commerce earlier this year that customs clearance of cars would only be made through verified payment. The payment is required to be made through foreign exchange and a certificate of bank affirming that the payment was received as foreign remittances. Furthermore, the latest enhanced federal excise duty on imported cars, as well as the devaluation of Pak Rupee also discouraged the customs clearance of motor vehicles.
The overall import of CBU vehicles fell by 81% to $18.3 million during first two months of current fiscal year as compared with $96.116 million in the corresponding months of the last fiscal year.
The import of cars in Completely Knocked-Down (CKD) condition also fell by 15.5% due to higher cost of assembling. The import of CKD cars was at $123 million during July – August 2019 as compared to $145.5 million in the corresponding period of last fiscal year.
The overall import of CKD vehicles came down by 26% to $183 million during first two months of current fiscal year as compared with $247.56 million in the corresponding period of the last fiscal year.
PBS reported that overall import of transport group fell by 36% to $320 million during July – August 2019 as compared with $500 million in the corresponding period of the last year.
A 3d animation professional with over 19 years of industry experience, an avid car enthusiast, petrolhead and social media influencer. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com