Imports of completely knocked down kits flourish in FY24

Unrestricted imports from February onwards increased the arrival of completely knocked down (CKD) kits to $779 million in FY24 from $750m in FY23 amid sales fluctuations and plant shutdowns. CKD imports fell drastically to $37m in January from $104m in December 2023 after the State Bank of Pakistan imposed curbs on opening fresh letters of credit (LCs) to discourage auto demand and control the current account deficit. After the central bank relaxed import restrictions, CKD imports flourished to $50m in February, $60m in March, $72m in April, $78m in May, and $104m in June. Some market experts believe that thriving CKD imports by the local assemblers were also due to the low localisation of parts in locally assembled vehicles, especially being rolled out by the new entrants under incentive packages offered in the 2026-2021 Auto Policy.