There are many shortcomings in the Pakistani auto industry, including the import of CBU units of vehicles. Auto companies in Pakistan, especially new companies, are importing thousands of CBU vehicles, leaving the government with a deficit of billions of dollars, meaning that we are spending more on imports than on exports.

Pakistan’s Finance Minister Shaukat Tareen, speaking on a recent program on Nadeem Malik, president of SAMAA TV and a well-known journalist, said that the government was banning the import of CBU vehicles for six to nine months.

CBU imports:

A total of 10,513 new vehicles (passenger vehicles, 4×4, vans, pick-ups, 2-wheelers, and buses) were imported to Pakistan in FY2021 as against 1,680 in FY2020. Similarly, in the financial year 2019, it was 3716 units and in 2018 it was 7424 units.

In the first two months of the current fiscal year 2022, car companies imported CBU vehicles worth 10 103 million, up 118% from 47 47 million in the same period last year.

Imports of CKD / SKD:

In the first two months of the current fiscal year 2022, car companies imported K 369 million worth of CKD / SKD kits for locally manufactured vehicles. The growth factor is 214% compared to 117 million in the same period last year.

Why did the government tamper?

When the new auto companies entered the Pakistani market, the government allowed them to import 100 CBU units per variant with tax exemption. The government’s move was aimed at encouraging these new companies to test their products in the market and invest in manufacturing these vehicles locally.

The companies, taking unfair advantage of government measures, imported the first consignment of 100 or more units and, after receiving a positive response from consumers, started booking more CBU units instead of locally manufactured vehicles.

Within a year, these car companies have sold thousands of imported CBU vehicles and are still selling them locally instead of manufacturing them. That is why the government has no choice but to ban the import of CBU vehicles.


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