The Lahore Chamber of Commerce and Industry (LCCI) has welcomed the decision by the State Bank of Pakistan (SBP) to remove cash margin requirement (CMR) on goods import.
In a statement, LCCI President Kashif Anwar, Senior Vice President Zafar Mahmood and Vice President Adnan Khalid said that due to measures taken to minimize imports, the industry was facing shortage of raw materials, machinery and other inputs which was affecting all the sectors.
They were of the view that the blockage of funds was arising due to the condition of 100 percent cash margin but now the situation would take a positive turn around.
They said that the removal of cash margin will support the ease of doing business in Pakistan as a number of companies were facing shortage of raw materials due to imposition of cash margin restriction. They said that the State Bank of Pakistan has taken a wise decision by removing the cash margin restriction.
They added that the government should also eliminate regulatory duty, customs duty and additional customs duty on essential raw materials. Apart from this, the issues of pending refunds and multiple audits should also be resolved besides reducing the rate of withholding tax for businesses.
It is pertinent to mention here that the central bank has decided to withdraw the existing CMR on the import of items with effect from March 31, 2023.