LCs not being opened to date despite SBP's clear instructions to banks: Tariq Yousuf - Press Release issued by Karachi Chamber of Commerce and Industry.

Karachi -- January 05, 2023 (PPI-OT)

Following is the text of press release issued by Karachi Chamber of Commerce and Industry (KCCI)

Quote

President Karachi Chamber of Commerce and Industry (KCCI) Mohammed Tariq Yousuf has saidthat after a lot of persuasion, the State Bank issued a circular on December 27, 2022 wherein SBP removed the condition to seek prior approval before initiating any import transaction under Chapter 84 and 85 but it seems that the directives to banks were somewhat different because no ease in imports has surfaced so far as the LCs, to date, were not being opened by banks including the LCs of essential items such as raw materials, food stuff, fruits, vegetables, pulses, medicines and other household products etc.

In a statement issued, President KCCI stressed that the importers of essential items whether commercial or industrial should be treated at par because industrial importers cannot import everything by themselves as there were many things which are to be purchased from the market as the inventory or the consumption does not allow them to import everything on their own. "Therefore, the import by commercial importers of raw materials for the industries, particularly the export-oriented industries, is critical so it should not be stopped at any cost."

He stressed that the banks denial to issue LCs should be taken as a very urgent matter and strict directives have to be immediately issued with a view to improve the situation. President KCCI further stated that another major problem was that a...