Import ban: Will it affect local car prices?

The government of Pakistan has partially banned the import of luxury goods and vehicles to deal with the economic crisis.
The ban has been in place for some time to protect the country’s foreign exchange.
It should be noted that vehicles up to three years old were allowed to be imported in Pakistan under the gift and principal baggage scheme.

Due to the ban on imports, it is feared that the lack of competition in the local market will lead to an increase in car prices.
HM Shehzad, chairman of the All Pakistan Car Dealers Association, told Urdu News that “this move by the government will affect people involved in this business in Pakistan and outside Pakistan.”
He said the move would deprive the government of the revenue it collects in terms of duty.

“Vehicles imported to Pakistan under the gift also bring dollars in terms of duty. Dollars used to come into the country due to the import of vehicles after the foreign exchange sent by overseas Pakistanis.”
However, according to Sunil Manj, founder of Pakistan’s first vehicle web portal Pak Wheels, the ban on car imports will not affect the local market, as luxury cars were imported into Pakistan and small cars were imported into Pakistan. They are still cheaper than cars.
HM Shehzad said that the government should consider importing hybrid and electric vehicles at present, which would reduce the import bill of petroleum products in the country.

He demanded from the government that the Prime Minister should reconsider this step.
“It simply came to our notice then.

Wool money will increase
Sunil Manj said, “The increase in demand for cars from local companies will lead to an increase in wool money, but the competitive atmosphere in the market will not end as 13 companies are now assembling vehicles in Pakistan.”
“Banning the import of imported vehicles will not make a difference in the price of small vehicles, but it will probably make a difference in the price of large vehicles,” he said.
“Local-made cars are directly related to the value of the dollar. If the dollar rises further, cars will become more expensive.

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