Importers reluctant to import raw materials

KARACHI: The Union of Small and Medium Enterprises (Unisame) has invited the attention of the State Bank of Pakistan (SBP) towards the reluctance of the importers to import raw materials and essential goods, despite the lifting of the import ban on raw materials and essential goods, a statement said on Friday.

Unisame President Zulfikar Thaver said that the importers are reluctant because they apprehend that when their ordered goods arrive at the ports and the documents reach the banks, they will face a shortage of dollars and the imported goods may stuck up.
In such a precarious situation, the bills will remain in queues and may be paid as per the foreign exchange earnings from exports or home remittances received.

Thaver said that it is; therefore, necessary that measures are taken to ensure that the import bills are paid as per the agreement.
To achieve this situation, the SBP in coordination with the ministries of finance and commerce has to make prior arrangements for funds from the countries exporting goods to Pakistan for deferred payments with the extended facility of time beyond the due dates of bills, he added.

Unfortunately, the economic managers are not considering different options to resolve this issue. With no timely imports of essential raw materials and other inevitable goods, the country will face shortages, leading to the closure of several units, he lamented.

It is, therefore, suggested that the Ministry of Commerce should enter into barter agreements with sufficient credit facilities for deferred adjustments. The other option is to give sovereign promissory notes to the exporting countries.

The government is not making advance preparations for such eventualities, which is of great concern. For this reason, the foreign shippers are reluctant to carry goods to Pakistan.

The Unisame Council said that the crux of the matter is that Pakistan is in dire need to import raw materials, packing materials, motor parts and components and parts of machineries.

The government must act fast and endeavour for loans from friendly and brotherly countries and certainly the International Monetary Fund (IMF) without any further delay.