Islamabad: The State Bank of Pakistan (SBP) has announced a significant change in trade regulations, permitting advance payments or remittances for the import of goods, as claimed by a news source on February 1.
As per the recent circular, the SBP communicated this policy adjustment to all banks, eliminating the requirement for prior approval from the SBP for advance payments. According to the circular, authorised dealers can now execute import advance payments, subject to appropriate due diligence, without prior SBP approval. These payments can be made against irrevocable letters of credit or invoices, up to the full value of the letter of credit or invoice.
This development offers importers the flexibility to make advance remittances without the necessity of opening a letter of credit, enabling payments of up to 100 % of the goods’ value. However, it’s emphasised that importers must procure dollars from banks as per the existing practice, despite the relaxation in import regulations.
As a graduate in English Literature, Zohaib believes that words are not just a mere figment of imagination. It takes wisdom to be good at them. Following this reason, he is pursuing his career as Public Relations and Content Specialist at Zameen.com.
