The removal of restrictions placed on the issuing of letter of credit by the State Bank of Pakistan, according to United Business Group (UBG) in the Federation of Pakistan Chamber of Commerce and Industry, will encourage the industrial and agricultural sectors to increase their output. UBG Chairman Shahzad Ali Malik, in his remarks to a delegation of industrial and agricultural importers, said that the industrial and agricultural sectors have been suffering greatly as a result of restrictions on the issuance of letter of credit for importing raw material, the main source for production.

According to him, it is a good sign that the State Bank of Pakistan has loosened the restrictions and given orders to all commercial banks to handle importer requests while taking into account their risk profile and the liquidity conditions currently in effect on the foreign exchange markets.

He said that in order to overcome the problem and advance trade and commerce in the country, the UBG informed higher authorities, including Finance Minister Ishaq Dar and Punjab Governor Engineer Baligh Ur Rehman, of the real and pressing problems facing the business community. Ali Malik said that the SBP has also sent back all cases received seeking permission for the issuance of letters of credit to the respective commercial banks for further processing by them.

In addition to the agriculture and energy sectors, he said that imports of life-saving medications, such as stents, and crucial raw materials for export-oriented enterprises can now be imported. According to him, such projects for imports that are almost finished and 75% of the machinery and plants that have already been imported have also received special approval on the UGB’s request.

Credit : Independent News Pakistan-WealthPk