Lahore Chamber Of Commerce & Industry Hails State Bank Of Pakistan For Allowing $ 10,000 Advance Payment For Raw Materials Import

Lahore Chamber of Commerce & Industry (LCCI) Wednesday welcomed State Bank of Pakistan (SBP) decision to allow advance payments up to US $ 10,000 per invoice on behalf of importers/exporters for import of raw materials and spare parts

LAHORE, (UrduPoint / Pakistan Point News - 13th Nov, 2019 ):Lahore Chamber of Commerce & Industry (LCCI) Wednesday welcomed State Bank of Pakistan (SBP) decision to allow advance payments up to US $ 10,000 per invoice on behalf of importers/exporters for import of raw materials and spare parts.

LCCI President Irfan Iqbal Sheikh, Senior Vice President Ali Hussam Asghar and Vice President Mian Zahid Jawaid Ahmad in a meeting with a delegation led by Amjad Ali Jawa, said that SBP deserved appreciation for accepting LCCI demand for advance payment.

They said that this important measure would yield good economic results and improve ease of doing business, besides injecting energy to the manufacturing sector as now they would be getting raw materials etc with quite ease. Big relief to the export-oriented industry would also bring considerable improvement in exports, they added.

LCCI office-bearers said that this business-friendly step of State Bank of Pakistan would make easy import of necessary items for export-oriented sector. They said that exporters would now be able to complete their international orders easily and cost of doing business would also be reduced.

They mentioned that in July 2018, State Bank of Pakistan withdrew the facility that was extended to the authorized dealers to make import advance payments against irrevocable Letters of Credit (L/C) up to 100 per cent of the value of the goods and up to US $ 10,000 per invoice for import of all eligible items without a requirement of L/C or a bank guarantee from the supplier abroad caused huge difficulties for the export-oriented industry but after restoration of this facility, situation would take a positive turn.

They said that allowing advance payment of up to US $ 10,000 or equivalent per invoice on behalf of manufacturing concerns for import of raw materials and spare parts was also hinting improvement in exchange rates.

They also urged the State Bank of Pakistan to increase financing limit under Export Financing Scheme and Long-Term Financing Scheme.

Only exports could bring economic stability to the country, they said and added that increase in financing limit under Export Financing Scheme and Long-Term Financing Scheme could bring a fundamental role in this regard.

Amjad Ali Jawa said that business community was really suffering and was demanding relief, adding that Lahore Chamber aggressively followed this case with highest authorities and eventually today the government announced relief that up to US $ 10,000 worth of shipments could be imported against cash.