During the first nine months of fiscal year 2022/2023, Pakistan’s imports of completely built unit (CBU) automobiles decreased by 81% due to government restrictions designed to support the country’s balance of payments.
During the first nine months of the current fiscal year, CBU car imports decreased to $47.31 million from $244.56 million in the same period of the previous fiscal year, according to data released by the Pakistan Bureau of Statistics (PBS) on April 18, 2023.
On May 19, 2022, the federal government imposed a moratorium on the import of luxury and non-essential items. The ban was revoked on 20 August 2022 at the request of the International Monetary Fund (IMF). Nonetheless, automobile imports remained negligible, declining 95% in September 2022 compared to the same month the year prior.
Comparing July to March of the current fiscal year to the same period of the previous fiscal year, the total import payment for CBU vehicles decreased by 71% to $139 million from $480 million. During the period under review, the import of CBU buses, lorries, and other heavy vehicles decreased by 52% to $1.35 billion from $2.82 billion in the same quarter of the previous fiscal year.
During the first nine months of the fiscal year 2022-2023, the import payment for Completely Knocked Down (CKD) automobiles decreased by 48%, to $361.35 million. CKD components are the essential raw material for local automobile assembly.
Due to the restrictions implemented by the State Bank of Pakistan (SBP) on the import of CKD kits, automakers in Pakistan have temporarily suspended production. Numerous additional automakers have announced temporary shutdowns due to inadequate inventory. The restrictions on CKD unit imports have also had an effect on the domestic sales of locally produced automobiles.