In order to reduce the yawning current account deficit, the government has decided in principle to impose a temporary ban on the import of completely built unit (CBU) vehicles (imported cars) for the next six months (Jan-June 2022), as well as raise regulatory duties (RDs) and additional customs duties (ACD) on 10 to 12 other luxury items.
With the adoption of a temporary restriction on the import of CBU, the government hoped to reduce its yearly import bill by more than $3 billion.
The current account deficit (CAD) reached $5.1 billion in the first four months of the current fiscal year (FY2021-22), compared to $2.3 billion approved by parliament and the National Economic Council (NEC) for the entire fiscal year in the previous budget (2021–22).
The government now appears concerned that, at the current rate, the CAD will exceed $15 billion in the current fiscal year.
The economic managers continued their meetings with key stakeholders, including ministries and divisions, with the goal of determining how to reduce the CAD.
