Karachi: The State Bank of Pakistan (SBP) has granted banks permission to make advance payments for imports, according to a news source. As per the publication, banks will now be allowed to pay up to 50% of the value of imports, against letters of credit from manufacturing concerns.
The SBP released a statement in this regard, which revealed that with this facility, manufacturers would now be able to import items such as plant machinery, spare parts and raw materials etc. by paying in advance.
Previously, this permission had been repealed in July 2018, due to the pressure on the foreign exchange market, and the precarious position of the balance of payments. Therefore, the reinstatement of this regulation has come as a welcome decision for manufacturers.
Recently, several crises have been gradually resolved, so the SBP decided to make things easier for manufacturers as well. This measure is part of the SBP’s mission to pull back previous restrictions and promote ease of doing business in the country. In turn, this will improve the foreign exchange and economic outlook of Pakistan.
