- Government set to remove import bans on “non-essential and luxury items”
- Mobile phones and automobiles still facing an import ban
- Energy to be offered at subsidized rates
The government is ready to lift the import ban on luxury items except on cars and mobiles.
Along with that, the government has decided to offer energy at subsidized rates. Gas will be provided at $9/unit and electricity at 9%/unit.
Sources have stated that the government is expecting about $3 billion in inflows from “some friendly sources” during this week.
Through the aid, the government will be able to give confidence and feel-good sense to the market. It will be able to support 5 export-oriented sectors and will simultaneously clear import payables as well.
Restrictions will gradually be eased on most imports which were imposed on about 85 items for a temporary period (except mobile phones and automobiles).
Why are Mobile Phones and Automobile Imports Still Banned?
According to government officials, vehicles and mobile phone imports have greatly contributed to Pakistan’s rising import bill.
While the growth of the automobile sector is promising, it still raises major concerns about Pakistan’s current account deficit.
Experts have stated that the launch of new cars from automakers with scarce localization of parts is severely damaging the country’s economy.