SBP urged to facilitate SME importers

KARACHI: The Union of Small and Medium Enterprises (UNISAME) has urged the State Bank of Pakistan (SBP) to facilitate commercial importers and suppliers of mechanical industrial equipment and spare parts by allowing advance payments below $10,000 against imports, a statement said on Saturday.

UNISAME President Zulfikar Thaver said that the SME commercial importers were playing an important role in timely catering to industrial customers’ requirements of different mechanical parts and components.

“Some of the order values are quite low, but due to restriction on commercial importers to send advance payment under the SBP’s Circular No 06 of 2018, they are unable to remit the advance payment to suppliers.”

Thaver said that the SME commercial importers

secured 30-day credit terms with the principal suppliers, but when the principal / supplier submitted the

documents, including set of original commercial invoice, airway bill, bill of lading to their bank for payment under firm registered contract; their bankers declined to process the documents, as the invoice values were too low and processing charges were exorbitant as compared to value of the invoice.

“Foreign suppliers are asking as to why when they are facilitating the SME importers, the State Bank is not facilitating their own businessmen,” Thaver added.

UNISAME urged the SBP to allow advance payment to suppliers as earlier allowed vide Para 30, Chapter 13 of the Foreign Exchange Manual – 2018 in terms of which authorised dealers were allowed to make import advance payment for the value of goods below / up to $10,000 on the basis of submission of the necessary proof of import such as goods declaration, cash payment, airway bill, bill of lading in due course once the goods were imported.