The Lahore Chamber of Commerce & Industry welcomed State Bank of Pakistan’s decision to allow advance payments up to $ 10,000 per invoice on behalf of importers/exporters for import of raw materials and spare parts on Wednesday.
The LCCI President Irfan Iqbal Sheikh, said that SBP deserves appreciation for accepting LCCI demand for advance payment.
They said that this important measure would yield good economic results, would improve ease of doing business and would inject energy to the manufacturing sector as now they would be getting raw materials etc. with quite ease.
“Big relief to the export-oriented industry would also bring considerable improvement in exports”, they added.
He said that this business-friendly step of State Bank of Pakistan would make easy import of necessary items for export oriented sector.
They said that exporters would now be able to complete their international orders easily and cost of doing business will also be reduced.
The LCCI office-bearers mentioned that that in July 2018, State Bank of Pakistan withdrew the facility that was extended to the authorized dealers to make import advance payments against irrevocable Letters of Credit (L/C) up to 100 percent of the value of the goods and up to $10,000 per invoice for import of all eligible items without a requirement of L/C or a bank guarantee from the supplier abroad caused huge difficulties for the export-oriented industry but after restoration of this facility, situation would take a positive turn.
They said that allowing advance payment of up to $ 10,000 or equivalent per invoice on behalf of manufacturing concerns for import of raw materials and spare parts is also hinting improvement in exchange rates.
They also urged the State Bank of Pakistan to increase financing limit under Export Financing Scheme and Long-Term Financing Scheme.
“Only exports can bring economic stability to the country”, they said and added that increase in financing limit under Export Financing Scheme and Long-Term Financing Scheme can bring a fundamental role in this regard.
Amjad Ali Jawa said that business community was really suffering and was demanding relief.
Lahore Chamber aggressively followed this case with highest authorities and eventually today the government announced relief that upto $10,000.00 worth of shipments can be imported against cash.