The State Bank of Pakistan (SBP) has relaxed import restrictions on Completely Knocked Down (CKD) kits for local automobile assemblers.
The SBP stated in an official announcement that the central bank has decided to relax import restrictions beginning January 2, 2023. This judgment allows the State Bank to accept petitions for previously submitted transactions.
Banks were expected to request approval from the State Bank’s Foreign Exchange Operations Department for clearance under notifications issued in May and July 2022.
The Import Effect on the Automobile Industry
Since mid-2022, the company has been suffering a manufacturing stoppage, which has harmed its monthly sales. The relaxation of import restrictions will allow manufacturers to resume manufacturing and sales. As long as they do not increase prices further.
Import Restrictions lifted from SBP (State Bank of Pakistan) chapters
The SBP has removed the limitations from HS Code Chapters 84 and 85, as well as specific articles and sections XVI and XVII from Chapter 87. These chapters are as follows:
In section XVI and HS Code Chapters 84 and 85
ELECTRICAL EQUIPMENT PARTS THEREOF
- SOUND RECORDERS.
- REPRODUCERS.
- TELEVISION IMAGE.
- PARTS AND ACCESSORIES.
In section XVII and HS Code Chapter 87
- Vehicles (CKD).
- AIRCRAFT.
- VESSELS.
- RELATED TRANSPORT EQUIPMENT.
Do you believe this will benefit the car industry? What do you think about lifting the restriction on CKD kit imports? Please leave your feedback in the comments area.
