FPCCI calls for govt action on non-opening of LCs for importers

ISLAMABAD: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday asked the State Bank of Pakistan (SBP) to address an ongoing issue of non-opening of letter of credits (LCs), saying importers were having to pay up to $120/container for single-day demurrage charges.

In a statement, FPCCI president Irfan Iqbal Sheikh expressed dismay over the economic situation in the country. “All the economic indicators have turned negative and the current unpredictable economic situation is creating great concerns in the business community,” the chief said, while addressing the business community during his visit to Islamabad Chamber of Commerce and Industry (ICCI).

He said the importers were bearing huge losses in demurrage charges for their containers stuck at the port for non-issuance of LCs. "The government should take business leaders on board to steer the economy out of troubles. I have never seen such an uncertain situation in my 45 years of business life.”

Talking of exports, Sheikh stated that Pakistan was doing exports majorly with only 10-12 countries, which should be expanded to other countries to tap new markets.

“Pakistan should focus on engineering products for exports as their share in the global market is 19 percent while the share of textile products is only 6 percent.”

FPCCI chief said he would hold a conference on the charter of economy and a conference on exports in January 2023 to develop proposals for improving the economy and exports.

He stressed that the business community should develop strong unity to influence the government for making business friendly policies, assuring that FPCCI would continue to play a role to resolve the issues of the business community and improve the economy.

Ahsan Zafar Bakhtawari, ICCI president said LCs of the business community were not getting opened due to which their production activities were badly suffering. “If this situation continues, many industries may face closure,” he warned.

He added that fast depletion of forex reserves of the country was creating a panic in the market. “Despite significant depreciation of the rupee, exports have shown a declining trend and the trade deficit is still high.”

Bakhtawari stressed that the government should also bring down the policy interest rate to a single-digit level to facilitate the growth of investment and businesses. He urged that the center to cooperate with the private sector in boosting exports to China, Africa, Central Asia and ASEAN countries to improve the forex reserves.