Pakistan bans import of non-essential luxury items as rupee hits new lows

Khaleej Times | Islamabad

The Daily Tribune – www.newsofbahrain.com

Pakistan on Thursday announced an ‘emergency economic plan’ under which it would ban the import of 38 non-essential items such as cars, furniture and fruit jams to help boost the country’s struggling economy.

Prime Minister Shehbaz Sharif said the import ban on luxury items as well as non-essential goods will help save the country’s foreign exchange reserves which dropped to $10.16 billion on May 13.

The Pakistan rupee also hit a historic low on Thursday, with 200 rupees fetching $1 or Dh54.5. The currency, which ended at 200.2 against the greenback in the interbank market, has lost value against the US dollar by 13 per cent since ex-premier Imran Khan’s government was ousted on April 10.

“My decision to ban (the) import of luxury items will save the country precious foreign exchange,” Sharif tweeted.

Information Minister Marriyum Aurangzeb said the decision to ban the import of 38 non-essential items will give a boost to the local economy and industry.

“We will be able to save $6 billion by imposing a ban on import of the luxury items,” Aurangzeb said at a press conference, adding that the ban would be effective immediately.

The list of non-essential luxury items includes automobiles, mobile phones, home appliances, shampoos, furniture, crockery, fruits and dry fruits (except Afghanistan), kitchenware, juices, pasta, ice cream, chocolates, cigarettes, and musical instruments, among others.