CBU Import Ban Can Have Negative Impact – GPCCI
After the incumbent government took the charge, not-well-thought economic strategies made the situation worse, leaving the officials with no option but to ban imports of vehicles.
Concerning the issue, the local auto market witnessed a non-issuance of LCs, a new price hike episode, production cuts, booking suspensions and late deliveries.
A New Challenge
And now, there comes a new challenge. The German Pakistan Chamber of Commerce and Industry has requested the government of Pakistan to lift the ban. Otherwise, it would elicit a negative effect on upcoming GSP+ negotiations with the European Union – may reverse the fortune.
In a letter to Finance Minister Miftah Ismail, German Pakistan Chamber of Commerce and Industry President Syed Nadeem Ali Kazmi has translated what they would have to face, in a case, if ban on import of vehicles is not lifted.
“We wish to bring your kind attention towards the existential crisis which is being faced by the three top German automotive brands in Pakistan- Audi, BMW and Mercedes-Benz. This is due to the current ban on imports”, he said.
Mind you, Pakistan and Germany have enjoyed close relations since 1951. Since inception observed in trade relations, both nations carry positive trade balance. Pakistan’s export to Germany stood at $1.568 billion while the country’s import figures were $1.016 billion.
Govt Lift Ban On Luxury Items But Not For Cars
Months ago, May 19 to be precise, the federal government banned import of a number of luxury items, including Completely Built Units (CBUs) or in easy words, imported cars. The ban was imposed on nearly 800 items in 33 categories. Used and new cars were among the items.
However, there is an update for you because media reports are suggesting that the government is all set to remove this ban. Good news, isn’t it, but not for petrol heads. The same reports added that the ban on the import of automobiles and mobiles would remain in place for the time being.
What do you think about the warning issued by GPCCI? Drop your thoughts in the comments section.