There is no foreign exchange spending on the part of government while importing vehicles under the transfer of residence, personal baggage and gift schemes for the overseas Pakistanis.
According to CBR officials, a substantial portion of import of motor vehicles under transfer of residence, personal baggage and gift schemes is available to expatriate Pakistanis. On the other hand, no foreign exchange is spent by Government for the import of vehicles under these schemes.
The entitled person ie an expatriate Pakistani, arranges the foreign exchange for this purpose by himself. Hence, although the volume of import of motor vehicles has increased substantially, its contribution towards the trade deficit is not proportional to the import value.
Moreover, the import of CKD kits by the motor vehicle assemblers generates industrial activity and is responsible for the present growth of automotive sector, which in turn has boosted the large scale manufacturing sector, the CBR added.
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