Pakistan to expand list of banned import items amid mounting current account deficit — media

ISLAMABAD: Prime Minister Shehbaz Sharif has instructed relevant authorities to expand a list of banned import items by adding more luxury goods to it, reported the local media on Tuesday, as Pakistan faces a growing current account deficit which has triggered serious financial challenges.
The country’s commerce ministry issued a list of 38 items, including mobile phones, cosmetics and pet food, in May while prohibiting their import. The government took the decision to reduce the import bill at a time when Pakistan’s foreign exchange reserves were declining and its currency was fast losing its value against the US dollar.
As the government prepares to present the next federal budget on Friday, it plans to take more measures to protect its forex reserves from unnecessary consumption.
“The prime minister has given instructions to Ministry of Commerce, FBR [Federal Board of Revenue], and other budget makers to identify items for purpose of banning and slapping RDs [regulatory duties] in a bid to decrease import bills,” The News reported while quoting an unnamed official privy to the matter. “Number of items that will be added to the RD list or banned list have not been decided yet.”
The official said the government was trying to curtail imports by $6 billion in the coming budget, adding that it already expected to save about $3 billion on the import of COVID-19 vaccines along with reduced shipping costs and rents of about $2 billion.
“The government is considering measures to curtail imports by $1 billion through different tariff and nontariff barriers,” he continued.
Apart from banning luxury items, Pakistan also plans to control the import of goods by imposing or adjusting regulatory duties on a large number of goods.