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 con-trary to the facts. It is clarified that there is no re-striction on the import of raw material for any in-dustry including export-oriented industry.
It is fur-ther clarified that SBP has advised banks, through EPD Circular Letters # 9 and #11 of May 20, 2022 and July 5, 2022, to seek prior permission before initiating transactions for import of Motor Cars (CKD), Mobile Phones (CKD) and machinery (fal-ling under HS codes Chapter 84, 85 and certain codes with prefix 87).
Keeping in view the concerns of the industry, SBP and the Federal Government, in consultation with the relevant stakeholders have devised a mechanism to accommodate import by different sectors/industries i.e. automobiles, mobile phones, home appliances.—PR
