The auto industry is on the verge of collapse as the government permits vehicle imports.

The government let 2,200 luxury cars into the country at a time when automakers and assemblers are about to shut down their plants. This cost the cash-strapped country $1.2 billion in the first half of the current fiscal year.
Pakistan spent $1.2 billion (or Rs259 billion) on the imports of transportation items, including luxury cars, high-end electric vehicles, and their parts, during the last six months. The country has less than $4 billion in its reserves and is in desperate need of dollars.

A leading automobile manufacturer has criticized the government’s decision to allow the import of luxury cars and other expensive vehicles. It said that it seems like a deliberate act to sabotage the local auto industry, which provides jobs to over 4 million people, contributes 4 percent to GDP, and pays direct and indirect taxes.

A senior auto company official said that the Pakistan Automobile Manufacturers Association has already sent a letter to the Ministry of Industries. He said that if the issue of LCs is not resolved soon, there will be huge layoffs in the country’s auto industry.

He said Millat Tractors suspended operations, and Al-Ghazi Tractors was operating at 20% of capacity. He said auto assemblers and manufacturers’ demurrage charges can exceed consignments’ value. (“Auto industry near collapse as Govt allows vehicle imports”)

Pak Suzuki Motor Company Ltd. extended its auto plant shutdown due to inventory shortages, partly imported from abroad. From December 20–30, Toyota-maker Indus Motors Company (IMC) closed its plant in the country. (“Pakistan facing economic collapse”)

Auto Industry on Verge of Collapse as Govt Allows Import of Vehicles. Accessed 30 Jan. 2023.