Government to ban imports of cars for six months

The government has decided in principle to ban the import of completely built units (CBUs) of vehicles (imported cars) for the next six months (Jan-June 2022) and to raise regulatory duties and additional customs duties accordingly.

With the approval of a temporary ban on CBU imports, the government sought to reduce its import bill to the tune of over $3 billion annually.

The current account deficit (CAD) in the first four months (July-October) of the current fiscal year (FY2021-22) was $5.1 billion versus $2.3 billion approved by the parliament and the National Economic Council (NEC) in the last budget for FY2021-22.

On Tuesday, the economic managers continued their discussions with key stakeholders, including the key ministries and divisions, with the objective of examining the possibility of crossing the $15 billion mark for the current fiscal year.