The Ban On Imported Cellphones Got Reversed
Import bans on mobile phones and knocked-down autos have been overturned. The Minister believes the change would save $500 million per month.
On Thursday, the government imposed a restriction on the entry of almost 800 goods in 33 classes from the international market, particularly food products, in an effort to keep the country’s declining FX reserves under control.
The commerce ministry published a four-page warning, SRO598 of 2022, late at night to change the import policy directive. Mobile phones were among the banned commodities in the notification. Still, the ministry quickly reversed its decision, preferring to treble import fees and taxes instead of outright prohibiting their entry, according to a senior customs official.
According to the official, duties on entirely knocked-down (CKD) automobiles have also been hiked, and both decisions are scheduled to be revealed on Friday.
The government’s move drew condemnation from both within and outside the country, with analysts predicting that the decision would have a multiplier impact on current prices, as the ban on food imports would cause prices of alternative indigenous products to rise.
The move comes after the dollar surged to new highs, breaking above the psychological barrier of Rs200, owing to increased import costs, a widening current account deficit, and dwindling foreign currency reserves.
PM Shehbaz Sharif is “working round the clock to stabilise the economy,” Information Minister Marriyum Aurangzeb said at a news conference on Thursday, adding that the prohibited commodities did not include any that were frequently utilised by the general population.
She claimed that locals will have to make some sacrifices because of the “emergency scenario.”
“We’ll have to cut down on our reliance on imports,” she added, announcing that the government is now focused on exports. Local industries will grow under the government’s economic strategy, according to the minister, while job possibilities would increase.
She went on to explain that the government’s decision will not affect importers who have already made purchases and reimbursed their vendors. “The money spent on the importation of various things cannot be recovered. As a result, the prohibition will not extend to such orders,” she explained.
“Import orders for which credit cards have already been established or money has been completed will be handled,” she said, adding that “no new orders will be accepted.”
Import limitations on certain commodities will not extend to trading, which is now going to take place with Iran, or rupee trading, which is going to place with Afghanistan in particular.
Pakistan’s overall import bill increased 46.51 per cent to $65.53 billion in 10MFY22 from $44.73 billion in the previous year’s comparable months. The import bill in April 2022 was $6.4 billion, up from $5.3 billion the previous year, a 27.4% rise.
Petroleum goods, food, and agriculture/chemical products accounted for roughly $4 billion, or 62 per cent, of the import bill in April.
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