The claim of not opening LC for raw material is incorrect, State Bank

In view of the concerns of the industry, the State Bank and the Federal Government devised a mechanism. Photo: File

Karachi: State Bank has said that the claim of not opening LC for raw materials is false.

The State Bank of Pakistan has said that recently some media reports and representatives of trade organizations have claimed that banks are not opening letters of credit for essential raw materials including pharmaceuticals. This claim is contrary to facts. It is clarified that there is no restriction on import of raw materials for any industry including export oriented industry.

It is further clarified that the State Bank vide EPD Circular Letters No. 9 and No. 11 dated 20th May 2022 and 5th July 2022 has directed the banks to provide (in the form of separate parts) motor cars and mobile phones. ) and machinery (which falls under Chapter 84, 85 of HS Codes and certain codes with prefix 87) take prior permission before starting the transaction.

Keeping in mind the concerns of the industry, the State Bank and the Federal Government in consultation with the relevant stakeholders have decided to introduce new schemes in various sectors/industries eg automobiles, mobile phones, home appliances, tractors, 2 and 3 wheelers, transformers and switchgear, A mechanism has been devised to accommodate imports by auto parts manufacturers, telecom operators and exporters.

State Bank has approved more than 7000 such cases so far. Delay in approval is sometimes due to submission of incorrect or insufficient information to State Bank. However, State Bank is making every possible effort to speed up the approval process.

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