LAHORE: The Lahore Chamber of Commerce & Industry Friday welcomed restoration of advance payment facility and said that State Bank of Pakistan deserves appreciation for feeling the woes of business community.
In a statement, the LCCI President Almas Hyder said that restoration of advance payment facility up to $ 10,000 per invoice for import of essential items for exporters without the requirement of Letter of Credit (LC) or bank guarantee to suppliers abroad would give a big relief to the export oriented sectors.
He said that this business-friendly step of State Bank of Pakistan would make easy import of necessary items for export oriented sector. He said that exporters would now be able to complete their international orders easily and cost of doing business will also be reduced.
Almas Hyder said said that the SBP vide its F.E. Circular No. 6 of July 14, 2018 has withdrawn the facility extended to the authorized dealers to make import advance payments against irrevocable Letters of Credit (L/C) up to 100 percent of the value of the goods and up to $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.
President of the Lahore Chamber of Commerce & Industry said it seems that State Bank of Pakistan has withdrawn this facility to shrink gap between imports and exports but it is not doing any service to the economy and creating more impediments for the exports instead of controlling the trade deficit. He said that imports are not a matter of concern if exports are increased.
Senior Vice President Khawaja Shahzad Nasir and Vice President Fahim-ur-Rehman Saigal said that restoration of advance payment facility would help release import consignment that were pending.
