The State Bank of Pakistan (SBP) has denied placing restrictions on the import of raw materials for any industry.
“Lately, some media reports and representatives of trade organizations have claimed that banks are not opening Letters of Credit (LCs) for essential raw materials including pharmaceuticals. This is contrary to the facts,” said a press release issued by SBP.
The central bank stated that there is no restriction on the import of raw materials. However, it has advised commercial banks to seek prior permission before initiating the transactions for the import of Completely Knocked-Down (CKD) cars, mobile phones and machinery (falling under HS codes 84, 85 and certain codes with prefix 87) through Exchange Policy Department (EPD) circular letters 9 and 11 of 20th May and 5th July 2022 respectively.
The central bank said that keeping in mind the concerns expressed by the industry, the SBP and the federal government have devised a mechanism to accommodate the imports by different sectors, including automobiles, mobile phones, home appliances, tractors, two and three-wheelers, transformers and switchgear, auto parts manufacturers, telecom operators, and exporters.
The central bank highlighted that it has accepted more than 7,000 cases in this regard to date. However, it acknowledged that there could be some delays due to inaccuracy of the information provided.