Pakistan is NOT a free port. That's a misconception.
The reason you see so many imports is because the government has liberalized the duty structure on imports to 100%, with a 2% depreciation allowance per month for upto 25 months. Minimum duty on an imported car is 50% after depreciation.
It might look good to see all these cars on the road but from an economic POV it's horrible. In India your domestic industries are taken seriously and protected. In Pakistan the government has essentially ruined the domestic auto industry by letting these imports pour in.
But why would the Pakistani govt care? So many kickbacks at Customs & Excise. |