Pakistan on July 28 lifted a two-month-old ban on import of “non-essential and luxury items”, with the exception of cell phones, assembled cars and home appliances, mentioning the concerns of trading partners and the effect of restrictions on supply chains and the domestic retail industry.
A meeting of the Economic Coordination Committee (ECC) of the cabinet presided over by Finance Minister Miftah Ismail made the decision to bring relaxation in the ban of imported goods.
“In light of the fact that imports substantially reduced due to consistent efforts of the government, the ECC decided to lift ban on imported goods except for autos completely built-up units (CBU), mobile phones and home appliances,” the Economic Coordination Committee (ECC) said in a statement.
The move has come despite falling foreign exchange reserves, a depreciating currency, and record imports and fuel purchases in June.
Earlier in May, Pakistan had imposed a ban on the import of all “non-essential luxury goods” considering a widening current account deficit (CAD), and also in a bid to stabilize the crippling economy hit by a rise in global commodity prices.
“In light of the fact that imports substantially reduced due to consistent efforts of the government, the ECC decided to lift ban on imported goods except for autos completely built-up units (CBU), mobile phones and home appliances,” the Economic Coordination Committee (ECC) said in a statement.
Approval of Wheat Tenders and Causality Compensation of Chinese
The committee also approved tenders for 200,000 tonnes of wheat at about $408 a tonne and allowed $11.6 million goodwill compensation for the Chinese casualties at the Dasu hydropower project in July last year, as approved by the Ministry of Water Resources.
“The ECC decided that the amount of compensation and goodwill package will remain the same as per the ECC’s earlier decision dated January 21, 2022 ($11.6 million) and approved disbursement of the compensation and goodwill amount directly to the company M/s China Gezhouba Group International Engineering Co Ltd (CGGC) through the Ministry of Foreign Affairs.
Further, an increase of 70% in the dealers’ commission on the sale of high-speed diesel (HSD) to Rs7 per litre from the current Rs4.13 was also approved at the meeting.