Struggling Pakistan has bowed to pressure from trading partners and domestic retailers by lifting a two-month ban on non-essential imports.
The country’s Economic Coordination Committee (ECC) said it took into account the negative effects of the ban, despite falling foreign exchange reserves, a depreciating currency and record imports in June.
Pakistan imposed the ban in May, citing a widening current account deficit.
“In light of the fact that imports substantially reduced due to consistent efforts of the government, the ECC decided to lift ban on imported goods except for automotive completely built-up units (CBU), mobile phones and home appliances,” the ECC said.
The committee said the Commerce Ministry reviewed the ban owing to “serious concerns” raised by major trading partners and considering the fact that the curbs had affected supply chains and domestic retail industry.
Despite the ban, Pakistan has struggled to curb overall imports in the face of rising global commodity prices, particularly fuel, in the aftermath of the Russia-Ukraine war.
- Reuters, with additional editing by George Russell
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