Pakistan lifts ban on imports of luxury items ahead of IMF meeting to decide on a bailout package
Pakistan
Pakistan on Thursday lifted the ban on the import of non-essential and luxury items. Finance Minister Miftah Ismail said that earlier the ban was introduced by the Shehbaz Sharif government primarily to provide basic necessities to the people as the country had a limited amount of dollars. The move has been made to meet a condition of the International Monetary Fund ahead of a meeting later this month to decide on a bailout package for the cash-strapped nation, PTI reported.
Ismail said that the removal of the ban would mean a price on importers as heavy duty would be imposed to make the import costly. He further added that the government was scrapping the import ban due to an international requirement, but the regulatory duty that will be imposed on the non-essential imported items will be three times higher than the current levels.
"We will impose such heavy duties that these items cannot be imported (easily) or at least in their finished form. I don't have enough dollars, so I will prioritise cotton, edible oil, and wheat. I do not prioritise iphones or cars," he said.
The heavy duties will be imposed on completely built-up (CBU) commodities, cars, mobile phones, and electronic appliances and apart from them, imported fish, meat, purse, and other such non-luxury items.
Talking about how high the duties might go, he cited an example that if someone wants to import a car worth Rs 60 million, it will end up costing them Rs 300-400 million. Ismail added that the government's objective was not just to allow imports, but it was to fulfil international and IMF demands, while also keeping the current account deficit in check.
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Notably, the IMF's executive board will meet on August 29 to approve a bailout package for Pakistan, including the pending disbursement of about $1.18 billion. Ismail said the IMF wanted Pakistan to ensure funds amounting to $6 billion for which it needs to secure $4 billion in funding from other countries, which has been arranged. Prime Minister Sharif would visit Qatar soon to sign the agreements, he added.
Pakistan is facing one of the worst economic situations in the country`s history. A number of serious issues are afflicting the country including current political, economic and social crises.
(With inputs from agencies)
