Pakistan Caretaker Govt to spend Big Fund on Purchase of New Vehicles Despite on brink of Default

The condition of Pakistan, which has been facing financial difficulties for the last few years, is almost like poverty. Despite this, the caretaker government of Punjab in Pakistan has decided to spend approximately 2.3 billion Pakistani rupees on purchasing luxury vehicles for its officials. Funds are being released to buy vehicles despite many countries, including the International Monetary Fund (IMF), facing the threat of default due to their failure to repay their debts.

a media Report Quoting the notification issued in this regard, it has been said that the Assistant Commissioner of each tehsil will be given a new double cabin Toyota Hilux. Apart from this, new Toyota Yaris will be provided to the Deputy Commissioner of each district and Toyota Corolla to the Additional Commissioner of each division. It has also been said in this notification that the vehicle which is being used by the Assistant Commissioner will be given to the Tehsildar. This decision is also being strongly opposed by the opposition parties.

Pakistan has to repay foreign debt of $2.44 billion this month. In this, China has given a loan of 2.07 billion dollars. Apart from this, the safe deposit of one billion dollars has also not been paid to China. Pakistan and China are in talks this month to rollover about three billion dollars of debt. Apart from this, Pakistan has to pay about 195 million dollars to Saudi Arabia this month. Countries like France and Japan also have outstanding debt payments.

Production bottlenecks are increasing for Indus Motor Company (IMC), which assembles vehicles in Pakistan for Toyota. IMC had said that the automobile sector is suffering huge losses due to the restrictions imposed on imports by the Central Bank of Pakistan and the weakening of the currency. PSMC assembles and markets Suzuki cars, pickups, vans and motorcycles in Pakistan. Due to the exchange rate crisis, problems have increased for Pakistan’s automobile industry which is highly dependent on imports. Apart from this, demand is also decreasing due to poor condition of the economy, high interest rates and high taxes on vehicles.