SBP removes all cash margin requirements on imports
Business
The withdrawal will be applicable with effect from March 31, 2023
KARACHI (Web Desk) - The State Bank of Pakistan (SBP) has withdrawn all cash margin requirements on imports to benefit importers.
The central bank had previously imposed requirements under six circulars from 2017 to 2022 to fulfil another condition of the International Monetary Fund (IMF) to reach a staff-level agreement.
In a Banking Policy and Regulations Department circular dated March 24, the SBP said it was withdrawing the “existing Cash Margin Requirement (CMR) on import of items with effect from March 31, 2023”.
The announcement comes as the central bank’s foreign exchange reserves increased by $280 million to $4.6 billion during the week ending on March 17 on the back of inflows from China.
Pakistan is required to reach a staff-level agreement with the global lender to secure a $1.2 billion tranche and unlock further inflows from other international creditors.
