KARACHI: The import of vehicles dropped by 32 percent to $531.53 million dollars during July – October of current fiscal year as compared with $780.57 million in the same period of the last year, according to data released by State Bank of Pakistan (SBP) on Wednesday.
According to payments against imports during July – October 2019/2020, the data revealed that an amount of $596 million was spent on import of all type of vehicles during first four months of current fiscal year as compared with $888.26 million in the same period of the last fiscal year.
On the other hand the Pakistan Bureau of Statistics (PBS) a day earlier released import data under which the import of used and old cars witnessed sharp decline of 81 percent during first four months of current fiscal year due to condition of payment of duty and taxes through foreign exchange imposed by the government.
The import of used and old cars in Completely Built Unit (CBU) condition fell by 81 percent to $20.24 million during July – October 2019/2020 as compared with $108.61 million in the corresponding period of the last year.
The overall import of CBU vehicles during first four months of current fiscal year fell 76.31 percent. The import of heavy vehicles including buses and trucks has declined by 67 percent. While import of CBU motorcycles fell by 75 percent.
The import of cars as Completely Knocked Down (CKD) condition also fell by 29 percent to $206.13 million during July – October 2019 as compared with $293 million in the same period of the last fiscal year.
Market sources said that massive depreciation in the local currency during past couple of years had increased the cost of local car manufacturers.
Further, the rates of locally assembled cars for end consumers also jumped up sharply.
These factors have reduced the productions of locally manufactured cars and subsequently reduced the import of cars in CKD condition.