SBP amends advance payment order

KARACHI: The State Bank of Pakistan (SBP) on Monday amended instructions requiring advance payment against imports, removing the requirement on letters of credit carried out before July 14.

Recently, the SBP had revised the instructions relating to advance payment facility allowed to importers through authorised dealers [banks] and had also restricted the import on open account basis to manufacturing and industrial users for import of spare parts/raw materials only.

“In view of representations made by a number of stakeholders, it has been decided that the restrictions earlier imposed on advance payment against imports shall not apply on letters of credit (containing clause regarding advance payment) established on or before July 14, 2018,” the SBP said in a statement.

Further, the conditions regarding issuance of shipping documents on or before July 20, 2018 and filing of goods declaration with Pakistan Customs by August 10, 2018 shall not apply in cases where consignments had gated-in/entered the ports of shipment on or before July 20, 2018, it added.