Pakistan Sees a Surge in Luxury Car Imports Despite Low Foreign Exchange Reserves

Pakistan has witnessed a significant increase in car imports in Completely Built-Up (CBU) form in recent months. According to the data shared by a prominent business analyst, Ali Khizar, Pakistan imported 1,159 cars in CBU form in June 2023, worth $20 million.

The imported cars include both used and new vehicles, with the majority being used. These cars range from basic passenger cars to luxury and electric vehicles, such as Lamborghini Urus, BMW iX and i7, Mercedes-Benz EQS, EQC, S580, AMG G63, Toyota Land Cruiser, Lexus LX570, Range Rover, and others.

Khizar attributed the rise in car imports to the revisions made by the current government in the rules regarding imports under the baggage scheme. He said that the government has relaxed the conditions for importing cars under this scheme, which allows overseas Pakistanis to bring cars to Pakistan without paying customs duty.

However, the data shared by Khizar has raised concerns among some netizens, who have questioned the impact of these imports on the economy and the environment. Some have argued that these imports are putting pressure on the foreign exchange reserves of Pakistan, which are already low due to the COVID-19 pandemic and other factors.

They have also pointed out that these imports are increasing the demand for fuel and electricity in Pakistan, which are already scarce and expensive. They have also criticized the government for allowing such imports while ignoring the local automotive industry, which is struggling to meet the demand and quality standards of the consumers.

Some have also expressed their views on social media platforms, saying that these imports reflect the inequality and elitism in Pakistan, where a few people can afford to buy expensive and luxurious cars while many others are living in poverty and hardship. They have called for a more balanced and sustainable approach to car imports and consumption in Pakistan.