Karachi: To curb imports and improvise exports, the government is instituting a plan to address the issues plaguing at the external front, said a government official.
The government is considering imposing more regulatory duties to discourage imports and incentivize exports, and an announcement in this regard is expected soon, said the official reported a local newspaper.
In March, the government had passed measures to reduce the imports of non-essential items like mobile phones, vehicles, cigarettes by demanding 100pc of the cash upfront from importers, but it hasn’t curbed imports in any given manner.
Last week, Profit reported Prime Minister Shahid Khan Abbasi said Pakistan intended to curb imports of luxury items in order to avoid a foreign exchange reserve crisis in a statement to Financial Times.
Abbasi said luxury finished goods could come under the scanner and more regulatory duties could be imposed on them to discourage its imports. He added that depreciation of the PKR wasn’t under consideration, as it was significant to maintain a stable currency.
The official added that an increase in remittances and exports won’t resolve the current account deficit being faced by the country and can only be addressed if imports get regulated. He shared the government intends to limit the budget deficit this year to below 5.8pc of GDP.
He said non-essential imports like luxury cars and mobile phones could face additional regulatory duties.
When enquired regarding Finance Minister Ishaq Dar’s legal difficulties and whether he was able to give time to important financial matters, the official said Dar’s focus was obviously diverted towards his issues.
The official said the finance ministry had a very capable and competent team and reassured policy work hadn’t been impacted considering Dar’s legal entanglements.
The State Bank of Pakistan in its monetary policy report on Friday said current account deficit was a major challenge facing the Pakistani economy.
