By Staff Reporter
KARACHI: The State Bank of Pakistan on Monday removed the requirement of obtaining approval before importing essential goods to facilitate traders.
Since last year the government has placed various restrictions on imports of goods after the current account deficit has spiralled out of control and the foreign exchange reserves have tumbled to less than a month of import cover.
The low reserves have compelled the government to restrict the import of goods, including industrial raw materials, to stop dollar outflows, whereas commercial banks have stopped issuing letters of credit (LCs), leaving importers struggling to arrange the greenback for already placed orders.
The Karachi Chamber of Commerce and Industry has said more than 7,500 containers of imports are stuck at ports, with industries facing an acute shortage of raw materials.
“In order to facilitate businesses, the SBP withdrew the requirement of prior approval of imports and instead gave a general guidance to the banks to prioritize import of certain essential items like food, pharmaceutical, energy, etc,” it said in a statement.
“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 up at the ports, due to delays in release of the shipping documents by the banks.”
Accordingly, the central bank said it has advised banks to provide a one-time facilitation to all those importers who could either extend their payment terms to 180 days (or beyond) or arrange funds from abroad to settle their pending import payments.
“Till March 31, 2023, the banks have been advised to process and release documents of shipments/ goods that have already arrived at a port in Pakistan or have been shipped on or before January 18, 2023.”
Further, banks have been advised to educate their customers to inform their banks prior to initiation of any import transaction to avoid any complications in the future.
Meanwhile, Minister for Maritime Affairs Faisal Sabzwari said the government has decided to waive the demurrage and port charges of stranded containers at the country’s ports, which were estimated to be around 8,000.
“Decision has been taken and notification would be issued soon in this regard,” Sabzwari told a news conference after meeting various stakeholders on the stuck up containers.
Thousands of containers of shipping lines were stuck at the ports; however, he refuted the reports that shipping lines were planning to wind up their operations from Pakistan. “Nothing of this sort would happen. Secondly, we have had talks with the shipping lines and have asked them to facilitate our businesses,” the minister said.
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