To give a lift to the course of payments into Pakistan, the government is going to allow overseas Pakistanis duty-free import of hybrid cars. Besides, the cars could be of up to 3,000cc engine capacity given that an expatriate pays a minimum of $100,000 in the span of two years.
Plus, the move is intended at attracting foreign money into Pakistan.
The Engineering Development Board (EDB) has circulated a notice to the stakeholders. In the notice, the government is inviting their remarks on the motion of duty-free import of one hybrid car of up to 3,000cc.
Moreover, it also says, asked about the proposal of Foreign Exchange Remittances Card (FERC) holders who pay $100,000 over two years.
Syed Zulfiqar Abbas Bukhari
The Special Assistant to Prime Minister on Overseas Pakistanis Syed Zulfiqar Abbas Bukhari Tweeted about the proposal.
“In recognition of our overseas Pakistanis who utilise banking channels to send money back home, my ministry has proposed to reward them for their contribution to the national exchequer.”
“I will be backing this initiative with full force; with this, we can deal with the menace of hundi/hawala.”
JS Global analyst Ahmed Lakhani
JS Global analyst Ahmed Lakhani said, after coming to government, the Pakistan Tehreek-e-Insaf (PTI) administration initially decided to crack down on the people who had stored money overseas.
“Now, the government is trying different and soft tactics to bring the money back into the country,” he continued. “After trying the stick, the PTI government is using the carrot to set the wheels of economy in motion,” he said.
Hybrid cars of 3,000cc engine capacity could be named high-end vehicles, which only the rich Pakistanis could bear, he said.
Furthermore, he said that Toyota Fortuner, with engine capacity of 2,755cc, was the most prized vehicle in Pakistan.
“The engine capacity of 3,000cc means that the vehicle price will be even higher than that for Toyota Fortuner, therefore, the incentive is only applicable to the elite class,” he said.
Nevertheless, he was of the view that these types of schemes could play an important role in the country’s economy; which was decaying from rising inflation along with a high-interest rate.
Additionally, He said that the incoming of dollars via these initiatives would support the government in managing the current account deficit.
Furthermore, he elaborated that the inflow of dollars would assuredly impact the economy; it would lead to a decline in inflation and the interest rate.
“Lower interest rate means local businessmen will be able to borrow at a lower cost and will leverage their business,” he said. “Increased business activity will generate employment, which is direly needed at this point in time.”
Read Also: Automotive Industry in Pakistan is going through a massive crisis.
Chairman of Association of Pakistan Motorcycle Assemblers (APMA)
Moreover, chairman of Association of Pakistan Motorcycle Assemblers (APMA), Muhammad Sabir Shaikh told the state was supporting Pakistani nationals living overseas to carry money into Pakistan.
Notwithstanding, the administration has so far not announced proper instructions for the import of cars, he stated.
“These kinds of vehicles are environment-friendly so the government should be quick to issue directives to the Federal Board of Revenue (FBR) in this regard,” he advised.
Besides, he added that although the state had passed the electric vehicle policy, yet it had not published the notification in this respect.