State Bank withdraws condition of prior permission for import Pipa News

State Bank withdraws condition of prior permission for import

State Bank withdraws prior permission condition for imports The State Bank of Pakistan (SBP) on Monday eased some of the restrictions imposed on imports after months of severe protests from industry players and stakeholders.

The central bank withdrew the requirement of prior approval of imports and directed banks to give priority to imports of certain essential items like food, medicine, energy etc.

A statement issued by the central bank said, “In order to facilitate businesses, the State Bank of Pakistan has withdrawn the requirement of prior approval of imports (under HS Code Chapter, 84, 85 and HS Code Chapter 87) under certain items).

,[…]instead [SBP] A general guide to banks on prioritizing imports of certain essential commodities like food, medicine, energy etc., said a statement issued by the central bank.

The SBP had imposed restrictions on imports in May 2022, following which many importers and industrialists cited these restrictions as the reason for shutting down or scaling back operations.

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The business community also strongly criticized the role of the SBP in the crisis regarding the difficulty in opening letters of credit (LCs). The criticism deepened last week when SBP governor Jameel Ahmed was criticized by stakeholders for his lack of support in opening the letter of credit.

In a statement issued today, the central bank noted that the business community, including various trade bodies and chambers of commerce, have highlighted that a large number of shipping containers carrying imported goods are stuck at ports, due to delays in releasing Has been Shipping documents by banks.

The SBP has advised banks to extend the one-time facility to all importers who can either extend their payment terms by 180 days (or more) or arrange funds from abroad to settle their pending import payments. Can

“Accordingly, by March 31, banks have been advised to process and issue documents for shipments/goods that have already arrived at a port in Pakistan or are expected to be discharged on or from January 18,” the statement said. Already sent.”

Further, the central bank is advised to educate its customers to inform their banks before initiation of any import transaction to avoid any complications in future.

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