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he recent ban on imported consumer goods is sure to hit hard the business of chained stores, as majority of city’s departmental stores attract their consumers with these products.
Over the last couple of decades, chained stores have come up in different localities of the provincial capital and quickly found their loyal customer base — thanks primarily to imported consumer goods, chiefly the packaged/ canned food items and beauty products. Some stores in posh areas also deal in imported vegetables and fruits including avocado, blueberries and baby corns. The recent ban will affect their business in a big way.
On the other hand, the localities where much of the city’s lower middle class is based have stores called Cash and Carry where you can buy certain imported items too.
The regular customers of big grocery stores have differing views on the ban imposed by the government. Some seem to support the ban but many others condemn the move, saying that the kind of quality they get in imported items they don’t get in local products. Some also say that a lot of things do not have local alternatives.
This scribe carried out a survey at these stores and talked to a number of customers, to hear their points of view. Shahid Khan, a resident of Johar Town, said, “As per official documents, the ban on the import of non-essential luxury items would have an impact of $247 million on the country’s import bill. This is peanuts compared to the whopping subsidy of billions of rupees the government is giving to people in different shapes and forms.”
Khan further said that he “used to buy several [imported] packaged food items such as cereals and honey whose local versions are of very poor quality. The government is getting a huge amount of import duty on these items and only a specific class uses these products. Those who can afford them should not be deprived of their right to purchase them.”
Khurram Raza, a banker by profession, was of the view that “mobile phones and automobiles are the major finished products that are imported; and the ban will only result in an increase in their prices.”
The government has banned 890-odd products, out of which over 650 fall in the category of consumer goods. The ban may lead to a rise in smuggling and misreporting, for example, from CBU phones and cars to CKD or semi-KD phones and cars.
The government has banned 890-odd products, out of which over 650 fall in the category of consumer goods. The ban may lead to a rise in smuggling and misreporting, for example, from CBU phones and cars to CKD or semi-KD phones and cars.
Mrs Faisal, a housewife who is based in EME Society and regularly buys food for her kittens, said, “The best pet food variety is imported. After the ban the prices [of these items] have soared. A one kg pack, which was previously available at Rs 4,000 is now selling for Rs 7,000. That’s almost double the original price.” She lamented the fact that she had no choice as she must feed her kittens well.
Muzamil Sultan, a resident of Faisal Town, said that the ban had created panic in the market. “A number of imported items including jewellery, cosmetics, toiletries, clothing, decoration, household etc are being hoarded, and the sellers are laughing all the way to the bank.”
However, he added that the ban “will force the local industry to step up and fill the gap. This way, local manufacturing will increase, and more business and employment opportunities shall be created.”
Junaid Siddiqui, a businessman who is settled in a posh part of Gulberg, quoted the example of Argentina which “introduced similar import bans and import licensing. The restrictions rested in a reduction in exports and particularly affected the small exporters.”
He seemed to agree that the ban would create a market for domestic products and the local industry would grow. “But in order for it to achieve that goal, the government must control smuggling and close all leakage,” he declared.
Ishfaq Khan, who works as a manager at a Cash and Carry store in Johar Town, whose “main attractions are the imported cereals, jams, baking items, crockery, and cosmetics” (his words), said that the ban had resulted in a massive increase in the prices of these goods.
Raheel Sheikh, a resident of Shadman, suggested that the government “should ensure that the ban stays, and no store should be allowed to sell imported goods. If this is not feasible, then the government should roll back the ban, because it will help no one.”
The writer is a city reporter at The News