KARACHI: Pakistan’s import of automobiles and other vehicles increased by 579 percent during the month of October amid widening trade deficit and depreciating national currency, though industrial stakeholders said it was still below the pre-pandemic level.
According to the data compiled by the State Bank of Pakistan, the country’s trade deficit increased by 106 percent to $7.6 billion during the July-October 2021 period of the current fiscal year as the nation’s imports increased by 65.4 percent to $25.1 billion from $15.1 billion last year.
The statistics related to the massive import of automobiles and other vehicles were released by the Trade Development Authority of Pakistan which indicated the sector's import bill had jumped from $20.26 million in October 2020 to $137.66 million last month, reflecting a 579 percent increase.
Meanwhile, the overall import of the transport group, including completed and semi-completed vehicles along with spare parts, increased by 140 percent to $1.5 billion during July-October 2021 (4MFY22) as compared to the corresponding period of the last fiscal year.
“The recent import of cars has witnessed an increase of 579 percent due to the arrival of the vehicles booked earlier, though it is still below the pre-COVID imports,” chairman of All Pakistan Motor Dealers Association HM Shahzad told Arab News on Tuesday. “The availability of ships and arrival of shipments have played a role in the rising number of auto imports.”
Pakistan’s growing imports have exerted tremendous pressure on the national currency, which closed at Rs174.89 to a dollar on Tuesday, gaining 0.23 percent against the previous close.
The sale of locally assembled passenger cars increased by 71 percent in the first four months of the current fiscal year from 43,865 units to 74,952 units, according to the Pakistan Automotive Manufacturers Association.
Car sales in October 2021 jumped by 45 percent from 11,997 units in October 2020 to 17,413 units last month. However, they declined by over eight percent on a monthly basis when compared to the statistics of September 2021.
Analysts attributed the growth in auto sales to the overall economic expansion amid a low-interest regime.
“The rise in auto demand has emerged within the context of economic growth triggered by the current interest rate scenario of seven to 7.25 percent which is very low,” Arsalan Hanif, an auto analyst at the Arif Habib Limited, commented. “The auto sales have increased due to consumer financing since the purchasing power of consumers has surged.”
Pakistan’s central bank recently took measure to limit auto financing through changes in regulations which effectively prohibit financing for imported vehicles.
It reduced the maximum tenure of auto finance from seven to five year and personal loan from five to four years.
The bank limited the auto financing availed to a single individual to not more than Rs3 million and increased the minimum down payment for auto financing from 15 to 30 percent.
Analysts said, however, the impact of the central bank’s measures would be visible after the first quarter of the next year.
“The impact is not visible currently since the auto delivery period has gone up to January and February and cars have already been booked and in the delivery pipeline,” Hanif said.
Dealers said the import and local assembling of passenger cars combined were still not meeting the growing demand in Pakistan which hovered around one million vehicles.
“The demand is not being met even through local assembling and imports combined since it is somewhere around a million vehicles,” Shahzad said.
Some dealers maintained the impact of price hike by local assemblers had also affected the sales of the imported vehicles.
“In a couple of years, the price of locally assembled cars has jacked up by Rs0.5-0.7 million which has also impacted the prices of imported cars,” Mirza Mehmood Baig, a motor dealer, said. “The sales have dropped because of higher prices.”
Dealers said due to the higher rates of local and imported vehicles, the major buying and selling activity was now gaining momentum in the market of used cars.
Pakistan’s car imports increased by 579 percent in October amid widening trade deficit
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Pakistan’s car imports increased by 579 percent in October amid widening trade deficit
- The country’s central bank has taken measures to limit auto financing, though the impact of the policy is likely to become visible in the next few months
- Industrial stakeholders say Pakistan’s auto imports are still below the pre-pandemic level
Top Bangladeshi commander meets Pakistan Navy officials, discusses regional maritime security
- The development comes amid a thaw in relations between both nations since PM Sheikh Hasina’s ouster in August
- The two sides discussed joint military exercises, reciprocal visits and training exchange programs, Pakistan Navy says
ISLAMABAD: Lt. Gen. SM Kamr-ul-Hassan, principal staff officer (PSO) of the Bangladesh armed forces division, on Sunday met senior Pakistan Navy officials and discussed with them regional maritime security cooperation, Pakistan Navy said.
Lt. Gen. Hassan toured Pakistan Navy ships and units during his visit to the southern Pakistani port city of Karachi, according to the Directorate General Public Relations (DGPR) of Pakistan Navy.
He met Pakistan Fleet Commander Rear Admiral Abdul Munib, Coast Commander Rear Admiral Faisal Amin and Managing Director of Karachi Shipyard & Engineering Works (KS&EW) Rear Admiral Salman Ilyas.
“During these engagements, discussions focused on professional matters of mutual interests, including regional maritime security and bilateral defense collaboration,” the DGPR said in a statement.
“Various potential areas of cooperation were highlighted, such as joint military exercises, reciprocal visits, and training exchange programs between the two countries.”
Pakistan and Bangladesh were once one nation, but they split in 1971 as a result of a bloody civil war, which saw the part previously referred to as East Pakistan seceding to form the independent nation of Bangladesh.
In the years since, Bangladeshi leaders, particularly former prime minister Sheikh Hasina, chose to maintain close ties with India. Relations between Pakistan and Bangladesh have warmed up since Hasina’s ouster as a result of a student-led uprising in August, witnessing a marked improvement.
“The visit of Lt. Gen. SM Kamrul Hassan is expected to further strengthen defense ties between the two brotherly nations, enhancing cooperation and solidifying the bonds between the armed forces of Pakistan and Bangladesh,” Pakistan Navy said.
Lt. Gen. Hassan, who is currently on a visit to Pakistan, this week met Chief of Army Staff (COAS) General Asim Munir in Rawalpindi, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing. During the meeting, both military commanders stressed the need for an enduring partnership between the two countries to remain “resilient against external influences.”
Earlier in the day, the Trade Development Authority of Pakistan (TDAP) said it would send two trade delegations to Bangladesh on Jan. 19-20 to increase bilateral relations and economic collaboration as both countries move to repair strained ties.
“The first delegation of dates comprising 13 exporters will leave for a week-long visit on Jan. 19 while the second delegation of citrus will leave for a business-to-business (B2B) meeting on Jan. 20,” the TDAP said.
The delegations will explore more trade opportunities, promote business partnerships and Pakistan’s export potential in the Bangladeshi market, it added.
The development comes days after the signing of a landmark agreement between Pakistan and Bangladeshi businesspersons to establish a joint business council between the two countries.
Pakistan’s Deputy Prime Minister Ishaq Dar is also scheduled to visit Dhaka at the start of February to further consolidate the relations between the two countries.
Pakistan to launch yuan-denominated Panda bonds by June, finance minister says
- The South Asian country intends to raise approximately $200 million from Chinese investors through Panda bonds
- Muhammad Aurangzeb says the move is part of a strategy to achieve sustainability in Pakistan’s balance of payments
ISLAMABAD: Finance Minister Muhammad Aurangzeb has said that Pakistan plans to launch yuan-denominated Panda bonds in June to enhance its presence in Chinese capital markets, Pakistani state media reported on Sunday.
The development follows an upgrade in Pakistan’s sovereign rating by all three major credit agencies. The country aims to get into the “single-B” category that would allow it to return to global bond markets to raise funds.
Aurangzeb said the South Asian country intends to raise approximately $200 million from Chinese investors through the issuance of the Panda bonds, the Radio Pakistan broadcaster reported.
“This step is part of a broader strategy to transition Pakistan’s economy toward export-driven growth, with a focus on achieving sustainability in the country’s balance of payments,” he was quoted as telling Hong Kong’s TVB news channel.
The South Asian country is navigating a challenging economic recovery path and has been buttressed by a $7 billion facility from the International Monetary Fund (IMF) in September. The government is optimistic it will meet the terms of the program.
Pakistan is being advised on the issuance of Panda bonds by the China International Capital Corporation, a partially state-owned financial services company, according to the finance minister. However, the latest figure is lower than the $300 million targeted by Pakistan last year.
Aurangzeb extended an invitation to Hong Kong to send delegations to explore trade and financial opportunities in Pakistan, according to the Radio Pakistan report.
“Hong Kong could serve as a strategic hub for joint ventures between Chinese and Pakistani companies,” he said.
To revive its $350 billion economy, Pakistan has been making efforts to position itself as a regional trade and transit hub by leveraging its strategic geopolitical position.
The South Asian country has witnessed a flurry of visits, investment talks and economic activity involving officials from Saudi Arabia, United Arab Emirates, China and Central Asian nations in recent months.
Pakistani security forces kill five militants in volatile southwest — military
- The militants were killed while attempting to ‘infiltrate’ Pakistan’s border in Balochistan’s Zhob district
- Islamabad blames a surge in militancy on militants operating out of Afghanistan, Kabul denies allegation
ISLAMABAD: Pakistani security forces have gunned down five militants in the country’s southwestern Balochistan province, the Pakistani military said on Sunday.
Balochistan, Pakistan’s largest province in terms of landmass that borders Iran and Afghanistan, has been the site of a low-level insurgency by Baloch separatists and religiously motivated militant groups.
The militants were killed while attempting to infiltrate Pakistan’s border in Balochistan’s Zhob district, according to the Inter-Services Public Relations (ISPR), the military’s media wing.
“Pakistan has consistently been asking Interim Afghan Government to ensure effective border management on their side of the border,” the ISPR said in a statement.
“Interim Afghan Government is expected to fulfill its obligations and deny the use of Afghan soil by Khwarij [Pakistani Taliban militants] for perpetuating acts of terrorism against Pakistan.”
The Pakistani Taliban, or the Tehreek-e-Taliban Pakistan (TTP), have frequently targeted Pakistani forces in the northwestern Khyber Pakhtunkhwa (KP) province. The group has also maintained some presence in Balochistan.
This week, Pakistani security forces also killed 27 militants in an intelligence-based operation in Balochistan’s Kacchi district, according to the ISPR. The deceased militants had been involved in militant activities against security forces as well as innocent civilians and were “highly wanted” by law enforcement agencies.
Islamabad has frequently accused neighboring Afghanistan of sheltering and supporting militant groups that launch cross-border attacks. Afghan officials deny involvement, insisting Pakistan’s security issues are an internal matter of Islamabad.
Masood defends Pakistan’s spin-spiced formula after West Indies win
- Pakistan completed the win before tea on the third day as spinners Sajid Khan grabbed 5-50 and Abrar Ahmed finished with 4-27
- The Test lasted fewer than eight sessions on a dry, grassless Multan Stadium pitch, with spinners taking 34 of 40 wickets to fall
MULTAN: Skipper Shan Masood defended Pakistan’s formula of using spin-friendly pitches to win home Test matches after a 127-run victory over the West Indies in Multan on Sunday.
Pakistan completed the win before tea on the third day as spinners Sajid Khan grabbed 5-50 and Abrar Ahmed finished with 4-27 to dismiss the West Indies for 123 after setting a 251-run target.
The Test lasted fewer than eight sessions on a dry and grassless Multan Stadium pitch, with spinners taking 34 of the 40 wickets to fall.
Sajid finished with nine wickets, fellow spinner Noman Ali six and the West Indian left-armer Jomel Warrican took a maiden 10-wicket haul.
Pakistan bowled just one over of pace in the match.
“If we want to be a top side in the World Test Championship then we have to sacrifice some things, like we did with the fast bowling in this Test,” Masood said.
Pakistan made drastic changes after going winless in 11 home Tests since 2021, using industrial fans and patio heaters to dry the Multan pitch against England last year.
Sajid and Noman took 39 of the 40 wickets to give Pakistan a come-from-behind 2-1 series win against England, repeating the same ploy against the West Indies.
Masood’s captain counterpart Kraigg Brathwaite had no issue with it.
They will play the second Test from January 25 at the same venue.
“They’re at home so they got their decision how they want the pitch to behave,” said Brathwaite.
“It was a difficult pitch to bat on for sure.
“We expect the same type of pitch in the second Test so we got to come better with bravery and belief.”
Left-hander Alick Athanaze hit the only half-century for the tourists in the match with 55, an innings Brathwaite wants his batters to learn from.
“He swept it on both sides so we just have to be brave,” said Brathwaite.
“We have got one more Test and we have to believe in ourselves.”
Pakistan to send trade delegations to Bangladesh on Jan. 19, 20 amid thaw in ties
- Pakistan to send business delegations of citrus, date fruits to Bangladesh next week
- Trade exhibition to showcase Pakistan’s potential in Bangladeshi market, says organizer
ISLAMABAD: The Trade Development Authority of Pakistan (TDAP) said on Sunday it will send two trade delegations to Bangladesh from Jan. 19-20 in a bid to increase bilateral relations and economic collaboration, as both countries move to repair strained ties.
Pakistan and Bangladesh were once one nation, but they split in 1971 as a result of a bloody civil war, which saw the part previously referred to as East Pakistan seceding to form the independent nation of Bangladesh.
In the years since, Bangladeshi leaders, particularly former prime minister Sheikh Hasina, chose to maintain close ties with India. Relations between Pakistan and Bangladesh have warmed up since Hasina’s ouster as a result of a student-led uprising in August 2024, witnessing a marked improvement.
The TDAP said that it would send two Pakistani trade delegations focusing on the trade of date fruits and citrus between the two countries.
“The first delegation of dates comprising 13 exporters will leave for a week-long visit on Jan. 19 while the second delegation of citrus will leave for a business-to-business (B2B) meeting on Jan. 20,” the TDAP said.
It said the business delegations aimed to explore more trade opportunities, promote business partnerships and Pakistan’s export potential in the Bangladeshi market.
Muhammad Zubair Motiwala, TDAP chief executive, said the authority planned to organize a trade exhibition in Bangladesh where Pakistani entrepreneurs will have a chance to showcase their products.
“Pakistan is one of the top ten importers of Bangladesh, covering sectors such as textiles, agriculture, food, chemicals and basic metals, but there is still room for further expansion of these imports,” he said.
He said both countries have been in talks for a Free Trade Agreement (FTA) since 2002, adding that it could pave the way for greater opportunities for the people of both countries.
The development comes after Tuesday’s signing of a landmark agreement between Pakistan and Bangladeshi businesspersons to establish a joint business council between the two countries.
Pakistan’s Deputy Prime Minister Ishaq Dar is also scheduled to visit Dhaka at the start of February to further consolidate the relations between the two countries.
