The State Bank of Pakistan (SBP) has denied all reports of restricting the issuance of Letter of Credits (LCs) for import of raw materials for any type of industry.
In a press release, the State Bank of Pakistan (SBP) stated that several media reports and representative of trade organizations have claimed that banks are not opening Letter of Credit (LCs) for essential raw materials, including pharmaceuticals.
2/2#SBP has already approved more than 7,000 cases received till date. However, there may be some delays because of inaccurate or insufficient information submitted to SBP. #SBP is striving hard to expedite the approval process as much as possible. https://t.co/ADhvTBknfA
— SBP (@StateBank_Pak) September 13, 2022
The SBP said that such claims are contrary to the facts and there is no restriction on the import of raw materials for any industry, including export-oriented industry. However, it added that banks have been advised to seek prior permission before initiating transactions for import of Motor Cars (CKS), Mobile Phones (CKD), and machinery (falling under HS codes Chapter 84, 85, and certain codes with prefix 87).
Keeping in view the concerns of the industry, SBP and the Federal Government, in consultation with the relevant stakeholders have devised a mechanism to accommodate import by different sectors/industries i.e. automobiles, mobile phones, home appliances, tractors, 2 & 3 wheelers, transformers & switchgear, auto parts manufacturers, telecom operators and exporters.
The central bank said that keeping in view the concerns of the industry, SBP and the Federal Government, in consultation with the relevant stakeholders have devised a mechanism to accommodate import by different sectors/industries i.e. automobiles, mobile phones, home appliances, tractors, 2 & 3 wheelers, transformers & switchgear, auto parts manufacturers, telecom operators and exporters.
Furthermore, it said that SBP has already approved more than 7,000 cases till date. The delays in approval are caused sometimes because of submission of inaccurate or insufficient information to SBP. However, the SBP is striving hard to expedite the approval process as much as it can.
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