26.6 C
Islamabad
Wednesday, September 28, 2022

Pakistan’s import bill of new and used cars jumped to $244 million in three quarters

A massive increase in import of both new and used cars has been seen in the nine month period of current fiscal year.

As per the figures of the Pakistan Bureau of Statistics (PBS), the import of cars in completely built-up (CBU) form swelled by 50% to $244 million in July-March 2021-22 from $163 million in the same period last fiscal year.

The import bill of new and used cars witnessed a whopping jump of 158% in FY21 to $256 million from $99 million in FY20. The import bill may touch the figure of $325 million for FY22 if the current trajectory continues unabated.

Over 20,000 used cars imported in last 8 months despite high prices

All eyes are on MG vehicles, whose imports have touched 12,000 units. The company has celebrated 10,000 unit imports through a media campaign recently.

The Federal Board of Revenue (FBR) in 2021, after opening an enquiry against the Lahore-based company for under-invoicing of vehicles, cleared the issue by saying that the case was false.

MG Motors imports are being investigated. According to reports at the time, the new entrant was under-invoicing one of its best-selling models, the MG HS. It was reported at the time that the Federal Board of Revenue had obtained “documents” and that the company had significantly understated the customs value of the vehicle, which was priced in Pakistan at $11,632.

Full-scale production of Pakistan-made MG vehicles to begin soon

In comparison, the same item cost more than $27,000 in the rest of the world. When the investigation was launched, the Chinese automaker had already imported 400 units, and some estimated that the alleged scam could have cost the national treasury billions of rupees.

Following the rumors, Javed Afridi, a key stakeholder in MG Pakistan, took to Twitter and stated, “As new entrants bring in exciting new models at far lower prices, we expect maligning campaigns and baseless rumors instead of competition.”

Related Articles

Latest Articles