The government has decided to suspend importing CBU (Completely Built Units) vehicles, as well as other “frivolous” imports, as the current account imbalance reaches an alarming $1.6 billion per month, according to Minister of Finance Shaukat Tarin.
The minister went on to say that the government would consider levying greater taxes on vehicles with larger displacement engines.
It is worth noting that in 2020–21, Pakistan spent record foreign money on the highest-ever arrival of new autos, with 10,513 units of new passenger cars, 4×4, vans, trucks, 2-wheelers, and buses, compared to 1,680 units in FY20, 3,716 units in FY19, and 7,424 units in FY18. In FY21, the import bill for fully (CKD) and semi-knocked down (SKD) kits for cars, motorcycles, and heavy vehicles reached a new high of $1.6 billion, up from $727 million in FY20.
