ISLAMABAD: Pakistan spent $1.2 billion (or Rs 259 billion) on the import of transportation products, including luxury cars, high-end electric vehicles, and their parts, over the past six months, according to The News, despite efforts to conserve foreign exchange reserves by curbing imports.

With less than $5 billion in reserves, Pakistan is severely short on dollars and can hardly afford to pay for three weeks' worth of imports.

Despite a general decline in imports of goods and vehicles for transportation compared to last year, the economy was nevertheless heavily burdened by significant outflows for the purchase of pricey luxury automobiles and pointless stuff.

Completely built units (CBU), completely knocked down/semi knocked down (CKD/SKD), totaling $530.5 million, or 118.2 billion, were imported during this period.

Since CKD kits are prohibited from being imported, yet millions of dollars' worth of these kits are, the local industry and their production are harmed.

The government's stance of banning imports relating to the industrial and commercial sectors is drawing much criticism, but large expenditure on imported cars and other vehicles is making matters worse.

During these six months, $1.03 billion, or Rs230.5 billion, was spent on road motor vehicles (build units, CKD/SKD). Spending on these vehicles was $1.87 billion in the same time last year, a 63% decrease.

Buses, trucks, and other heavy vehicle imports totaled $75 million (Rs16.6bn) under the completely built units (CBU) category from July to December 2022–2023, while motor vehicles brought in $32.6 million.

Bus, truck, and other heavy vehicle imports were worth $722.5 million (Rs161 billion) under the CKD/SKD, while imports of motor cars totaled $498 million (Rs111 billion). Additionally, motorcycle imports were $27.6 million.

In addition, imports of components and accessories totaled $188.6 million (Rs42 billion). In a similar vein, $47.7 million was spent on the import of ships, boats, and planes.

The imports into the transportation industry were only $140.7 million in December (Rs31.6 billion). Of this, $47.5 million, or 11.3 billion rupees, was used to import cars, $27 million to import parts and accessories, $3.6 million to import motorcycles, $25 million to import buses, trucks, and heavy vehicles, and another $22.4 million to import boats, ships, and aeroplanes.

According to reports, the current administration has eased a ban on the entry of luxury cars despite economic challenges. One of the main ways that money leaves the economy is due to this.