By Staff Reporter
ISLAMABAD: The government on Thursday lifted a nearly two-month ban on the import of several non-essential luxury goods despite an alarming low levels of foreign currency reserves.
The Economic Coordination Committee (ECC) of the cabinet, country’s top economic decision-making body the curbs have had severely hit supply chains and the domestic retail industry.
The government in May imposed a ban on the import of all non-essential luxury goods citing a widening current account deficit, and also in a bid to stabilise an overheating and struggling economy hit by a rise in global commodity prices.
“In light of the fact that imports substantially reduced due to consistent efforts of the government, the ECC decided to lift ban on imported goods except for autos completely built-up units (CBU), mobile phones and home appliances,” the ECC) said in a statement.
Finance minister Miftah Ismail chaired the ECC meeting.
The commerce ministry reviewed the ban owing to serious concerns raised by major trading partners and considering the fact that the curbs had impacted supply chains and domestic retail industry.
Despite the ban, Pakistan has struggled to curb overall imports in the face of rising global commodity prices, particularly fuel, in the aftermath of the Russia-Ukraine war.
Pakistan posted record monthly highs for imports and petroleum-related purchases in June. Its current account deficit for the financial year that ended Jun 30 was US$17.4 billion – more than quintuple the US$2.8 billion posted in the last financial year, 2020-21.
The ECC lifted a ban on the import of 33 non-essential categories except imported vehicles, mobile phones, and home appliances.
A ban on completely built unit (CBU) of autos, mobile (CBU) and Home Appliances (CBU) will continue for time being. But import of spare parts in shape of CKD for auto sector, mobile and home appliances have been allowed.
“Due to the decision, the overall imports of the banned items have shrunk by over 69 percent i-e from $399.4 million to $ 123.9 million. A review meeting was also held to review the ban after two months owing to serious concerns raised by major trading partners on the imposition of ban and considering the fact that the ban has impacted supply chains and domestic retail industry, ” the statement said.
The ECC also approved to fix dealers margin at Rs7 per liter for Motor Spirit (MS) and High-Speed Diesel (HSD).
Pakistan Petroleum Dealers Association has approached the government for immediate revision of their margins due to inflation, increase in tariff salaries and utility bills, etc.
The meeting also approved a food ministry’s urgent advice on the award of fourth international wheat tender 2022 for buying of 200,000 tons on CFR basis. The government received five offers.
“The ECC after detailed discussion approved the lowest bid offered by Falconbridge FZ LLC at $0407.49/ton CFR bulk on sight LC basis with direction to TCP to negotiate with the Russian authorities to procure wheat on lower rate subject to confirmation of the ECC, ” the statement said.
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