Economic crisis raging, but Pakistan spent $1.2 billion on import of cars, including luxury models

Pakistan has been facing one crisis after another for the past several months. Today the country was plunged into darkness owing to a massive power outage

New Delhi, Jan 23: Despite an ongoing crisis that has hit its economy, Pakistan has spent $1.2 billion or Rs 259 billion on the import of cars, including luxury cars, high end electric vehicles and their parts in the past six months, a media report said.

The country which today was hit by a massive power outage has been in the midst of an economic crisis with the foreign exchange reserves depleting to just $4 billion. This has forced the central bank to slow down the import of even essential items into the country.

Despite an overall reduction in imports of transportation vehicles and other items when compared with last year, the economy was still burdened with heavy outflows for buying luxury and other useless items.

Reports said that during these six months, the country imported completely built units completely knocked down/semi knocked down of $530.5 million which is equivalent to Rs 118 billion. Millions of dollars of the completely knocked down kits are being imported despite not being allowed and this has harmed the local industry and their production.

A lot of questions are being raised on such imports even though the economy is suffering.

During July-December 2022-23, imports of buses, trucks and other heavy vehicle imports were $75 million and motor cars at $32.6 million under the completely built units.

Under completely knocked down and semi knocked down, imports of buses, trucks and other heavy vehicles imports were at $722.5 million, while motor car imports were at $498 million. Motorcycles imports stood at $27.6 million. Besides, the parts and accessories imports stood at $ 188.6 million. $47.7 million was spent on the import of aircraft, ships and boats.

In December the transport sector's imports stood at $140.7 million and off this Rs 11.3 billion were spent on the import of cards, $27 million on parts and accessories, $ 3.6 million on motorcycles, $25 million on buses, trucks and heavy vehicles and another $22.4 million on import of aircraft, boats and ships.

The incumbent government had despite the economic crisis lifted a ban on the import of luxury cars recently. This became one of the significant source of dollar outflow.