MPs for taking stringent measures to resolve issue of non-clearance of LCs.

ISLAMABAD -- Senate Standing Committee on Commerce on Wednesday stressed the need for stringent measures to be taken to ensure that problems faced by the business community especially textile industrialists due to non-clearance of LCs are addressed at the earliest.

A meeting of the Senate Standing Committee on Commerce was held on Wednesday. Issues taken up included problems faced by the business community especially textile industrialists due to non-clearance of LCs causing closure of industrial units and import of edible food items from various countries ensuring availability in markets on affordable rates.

Discussing issues faced by the business community especially textile industrialists due to non-clearance of LCs, the Committee was informed that the State Bank of Pakistan had directed authorised dealers to seek prior permission from Foreign Exchange Operations Department (FEOD), SBP-BSC for initiating the import transaction of specific goods through issuance of letter/amendment of credit, registration/amendment of contract, making advance payments and authorizing transactions on open account or collections basis. The MoC made a list and requested SBP to withdraw the condition for prior permission for certain essential goods. Regular meetings were held in this regard and assurances were given that banks/Ads would prioritise import related transactions of export oriented sectors. As of December 2022, restrictions have been removed for import transactions pertaining to HS codes Chapter 84 and 85 and has been effective from 2nd January, 2023. Requests for import transactions have already been submitted.

The Committee stressed the need for stringent measures to be taken to...