ISLAMABAD, 13 Oct. In response to the slower economy in light of the flooding, Syed Murtaza Mahmud, the Federal Minister for Industries and Production, said, “Pakistan may become an export hub for car components, mobile phones, and electrical goods.”
On May 19, the government enacted an import ban on more than thirty luxury and non-essential goods as part of an emergency economic strategy to stabilize the dwindling foreign exchange reserves and growing import costs. As the trade imbalance has significantly decreased throughout the course of the current fiscal year, according to Federal Minister for Finance and Revenue Miftah Ismail, the move has in some ways assisted in restricting imports.
About this, Syed Murtaza Mahmud told that “things have improved a lot now. The short-term measures taken by the finance ministry were for a short period, in which they discouraged the import of parts for the auto sector, mobile phones, electrical equipment, and electrical appliances. They have resolved their letters of Credit (LC) and other problems.
The International Monetary Fund (IMF) required that the prohibition be repealed a few months later, although limitations on the import of fully assembled cars, cell phones, and household appliances were still in effect.
“I believe that Pakistan has a lot of potential as an exporter of both mobile devices and electrical products. The ministry is involved with the mobile phone industry and is in conversations with them to come up with favorable policies, he continued, adding that the government is working on it.
Due to the continued prohibition and limitations, Pakistan’s two top automakers, Toyota and Suzuki, have announced plans to partially shut down their plants.
Without a question, the current environment has made things difficult for the car industry. To cut our imports, the finance ministry concentrated on the mobile phone and car industries, Syed Murtaza Mahmud said. He said that unless the nation moves toward localization and export of auto components, these difficulties won’t be resolved.
“Until we take steps toward localization and begin producing vehicle components in Pakistan, we will continue to deal with this problem. I believe Pakistan has enormous potential for the export of car components since we have inexpensive labor and if we implement excellent policies. The minister said that Pakistan may increase its overall car part exports.
According to Syed Murtaza Mahmud, Pakistan has untapped potential for exports to significant markets like China and several other trading partners. “I am optimistic that if we implement solid policies, this export will significantly rise.”