LAHORE -  Pakistan Automotive Manufacturers Association (PAMA) has urged the Ministry of Finance to abolish the requirement of 100 percent cash margin on opening of LCs for import of CKDs of automotive vehicles.

In a letter to the ministry on March 3, PAMA Director General Abdul Waheed Khan stated that State Bank's notification ERD/M&PRD/PR/01/2017-16 (dated February 24, 2017) imposed 100 percent cash margin requirement on the import of certain consumer items including motor vehicles (both in CBU and CKD condition).

“In this regard we would like to submit that the automotive industry is just taking strides towards growth after facing a decline in last couple of years. The parts import under knock down condition ie CKD is an input material for vehicle manufacturing,” he added. He said this measure will give competitive disadvantage to local assemblers, over import of used cars under baggage scheme, normally making payment through TT remittances and other channels.