SBP withdraws prior approval requirement for imports

KARACHI: To facilitate businesses, the State Bank of Pakistan (SBP) has withdrawn the requirement of prior approval of imports falling under HS code chapters, 84, 85 and certain items under HS code Chapter 87 and instead gave a general guidance to the banks to prioritise import of certain essential items like food, pharmaceutical, energy, etc, a statement said on Monday.

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 the release of the shipping documents by the banks.

Accordingly, the central bank advised the 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.

Accordingly, till March 31, 2023, the banks have been advised to process and release the documents of shipments and goods that had already arrived at a port in Pakistan or have been shipped on or before January 18, 2023.

Further, the 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.