The cars' import growth has increased by 1.04% during the six months of the current fiscal year. Similarly, the import in overall transport group showed upward trend by increasing 26.56% during the same period.
Pakistan spent a total of US$ 197.370 million on the import of cars against US$ 195.340 million in the corresponding period last year.
The small cars constitute more than 50% of the overall road motor vehicles imports but it is surprising to note that with the absorption of one off impact of reduction of custom duties on car imports, increase in the domestic interest rates with the tightening of the monetary policy, the surge inflow of motorcars in CKD/SKD and CBU conditions increased in July-December 2007 against last corresponding year.
In the month of December 2007, the import of motorcars in CKD/SKD category, increased by 87.91% by spending 1.819 million rupees versus 968 million rupees during July-December 2006.
Pakistan spent US$ 215.973 million on the import of CLU category, which showed surge of 3.37% during July-December 2007 while the amount of US$ 208.926 million had been spent on importing CBUs during July-December 2006.
In the FY2006-07, over Rs. 13 billion were spent on importing cars into Pakistan . Depreciation on imported cars allowed at 2% a month (50% over two years), where as locally produced cars at only 15%. Compared to regional auto policies, import in Pakistan through personal baggage scheme is very liberal.
Source:
Engineering Development Board – Industrial Bulletin (Print Edition Vol. 7 No. 3)
