It has come to our notice that the State bank now is imposing full (100 %) cash margin for some consumer products.

For some of you who does not know what Cash margin is the money that the company generates from its core operations per dollar of its sales.

This cash margin applies to motor cars (Both imported and local assembled), mobile phones, jewelry, cigarettes, personal care items for daily use, home appliances, arms and weapons etc

Why they have done this?

State bank wants to keep a check on the import of new items.  They want the public to use local items and do not want to endorse the imported goods. This will persuade someone to buy the local manufactured products only.

This will impact the people like us because not everything is manufactured in Pakistan in a good quality.  If we talk about the mobile phones, all are the foreign companies like Apple, Samsung, Huawei and LG.  Everything to going to become expensive as no one will stop buying mobile phones of top brands

Effect:

This will increase the illegal import of items in the country through smuggling.  We would be seeing boost in the grey market.  This will also prevent the new companies who were planning to start manufacturing in Pakistan i.e Fiat automobile manufacturer from Italy.

This is a sad news and if this happens it would be very discouraging and Pakistan will face difficulty in this time when we are already fighting for terrorism.