State Bank of Pakistan (SBP) has imposed 100 % cash margin requirements on the import of some consumer items including vehicles, mobile phone, jewelry, cigarettes, cosmetics, personal care, electrical and home appliances, arms and ammunition etc.
This measure will discourage the import of these items and would have nominal impact on the general public.
For a layman’s understanding the prices of these items will go up, though it is too early to predict its actual impact.
This also implies that import of such items from illegal channels will increase. This will also discourage the new entrants in vehicle industry which were planning enter Pakistani markets in next few months.