Automakers Request Govt To Ease Import Restrictions

Web Desk — Automakers have urged the government to ease the import embargo after observing a significant drop in sales and car finance.

Director General of the Pakistan Automotive Manufacturers Association (PAMA) Abdul Waheed Khan has written to the Ministry of Industries and Production to clarify the import curbs that are shattering the auto industry.

As per the quota allocated by the State Bank of Pakistan (SBP), OEMs have been restricted from importing auto parts since May 19, 2022. From August 2022 on, automotive vendors were also prohibited from importing auto parts under Chapter 84 and 85,” Khan said.

“Initially, the auto industry was fully supportive of the government’s measures to curb imports due to the dire economic situation of the country,” he continued.

Khan suggested that now that the economy is improving and the first tranche of the IMF loan has been received, it is the right time to ease import restrictions with the auto industry.

With skyrocketing inflation affecting consumers’ purchasing power, the recent restrictions by the State Bank of Pakistan (SBP) have added fuel to the fire.

A new downturn in car financing has been reported since January 2022, according to reports. Consequently, the market may experience production cuts.