Pakistan continues to import luxury items despite ban
To pull the country out of the economic crisis, Pakistan had put a ban on the import of luxury items however country's finance minister now said that Islamabad continues to allow these imports.
To pull the country out of the economic crisis, Pakistan had put a ban on the import of luxury items however country's finance minister now said that Islamabad continues to allow these imports. In May, the Pakistani government unveiled an emergency economic plan and banned the imports of dozens of non-essential luxury items, reported ARY News.
Ismail, in a tweet, said that the government was allowing the imports of all items that have reached the ports by June 1 with a small surcharge to avoid losses to importers. "Even after the government banned certain luxury goods temporarily, many shipments of these items inadvertently came to our ports. To avoid losses to importers, the government is allowing the imports of all items that have reached our ports by June 1 with a small surcharge," Ismail wrote in a tweet.
In another tweet, Miftah wrote, "Moreover Faisal Subzwari, Federal Minister for Maritime Affairs the Maritime minister and I are trying that these importers have to pay little or preferably no demurrage or container detention charges. For this of course we need cooperation of container terminal operators and container owners." Pakistan had announced a ban on the import of 38 non-essential luxury items under 'emergency economic plan' amid the record fall of country's currency against the US dollar, on account of the rising import bill, and depleting foreign exchange reserves.
The decision would "save the country precious foreign exchange", Pakistan Prime Minister Shehbaz Sharif had said. "My decision to ban import of luxury items will save the country precious foreign exchange. We will practice austerity and financially stronger people must lead in this effort so that the less privileged among us do not have to bear this burden inflicted on them by the PTI government," Sharif had tweeted.
As the situation stands currently, Pakistan may have nuclear capabilities however the country is fighting with its fast exhausting foreign currency reserves and widening fiscal and current account deficits, along with a rupee that has lost almost 20 per cent of its value in just 7 months since January 2022. State Bank of Pakistan's reserves has fallen to as low as USD 9.32 billion, hardly enough to pay for 45 days of imports. The red line for SBP foreign currency reserves is USD 7.5 Billion to avoid "default".
Pakistan's political instability threatens to derail efforts to regain the confidence of key lenders. The country's currency endured its worst week in more than two decades, reflecting investors' worries that the country risks following Sri Lanka to become the next emerging economy to default on foreign repayments.The emerging-market currencies are feeling the heat as the hawkish Federal Reserve lures capital toward the United States. The panic in Pakistan's stock and money market also comes from escalating risks after former prime minister Imran Khan's by-polls win added to concern over the country's bailout deal with the IMF, which it needs to avoid a default. (ANI)
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