SBP withdraws requirement for prior approval of certain essential items' imports

SBP withdraws requirement for prior approval of certain essential items' imports

KARACHI (Web Desk) - In order to facilitate businesses, the State Bank of Pakistan (SBP) has withdrawn the requirement of prior approval of imports (falling under HS code Chapters, 84, 85 and certain items under HS code Chapter 87).

Instead the central bank gave a general guidance to the banks to prioritise import of certain essential items like food, pharmaceutical, energy, etc, a press release says.

The business community, including various trade bodies and chambers of commerce, have highlighted that a large number of shipping containers carrying imported goods are stuck up at the ports, due to delays in release of the shipping documents by the banks.

Accordingly, the SBP has advised banks to provide a one-time facilitation to all those importers who could either extend their payment terms to 180 days (or beyond) or arrange funds from abroad to settle their pending import payments.

Accordingly, till March 31, 2023, banks have been advised to process and release documents of shipments/ goods that have already arrived at a port in Pakistan or have been shipped on or before January 18, 2023.

Further, banks have been advised to educate their customers to inform their banks prior to initiation of any import transaction to avoid any complications in the future, the release further says.

-- Edible oil containers get stuck at Karachi port --  

Containers carrying 350,000 tones of edible oil await clearance from the Karachi ports as importers are unable to get US dollars from the banks.

It is being feared that non-clearance of containers will disrupt supply chain and oil of multiple brands could increase their prices.