In the last nine months of fiscal year 2022, Pakistan saw another large increase in automobile imports (FY2022). According to figures from the Pakistan Bureau of Statistics (PBS), car imports in completely built-up (CBU) form surged by 50% to $244 million from July 2021 to March2022, compared to $163 million in FY2021.
This is the second consecutive increase in CBU vehicle imports, following a 158 percent increase in imports in FY21 compared to FY20.
That increase, however, was due to the resumption of business activity following the COVID-19 lockdowns.
MG has being scrutinized once again for being one of the few car businesses that only sells imported cars.
According to a media estimate, MG has imported somewhat more than 12,000 CBU SUVs so far, a significant contributor to the rising import expense, according to certain analysts and key persons.
Imports of car parts, accessories, and CBUs account for 3% of the entire import bill, according to him. Imports of Completely Knocked down (CKD) and Semi Knocked down (SKD) kits account for 86 percent of that 3%, according to him.
He also claimed that secondhand cars accounted for 90% of the overall $244 million import bill in 9M/FY22.
He expressed his dissatisfaction with the government’s failure to account for the 22,000 secondhand cars that arrived in Pakistan under various initiatives in 2021.
He also stated that MG is still waiting for the Engineering Development Board’s (EDB) manufacturing certificate, which it requested for in September 2021.
He further stated that as soon as the certificate is received, the company will stop producing CBU vehicles.
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