New System of NBP will unnecessarily delay the Trade
Mr. Shabbair Mansha, Convener FPCCI Standing Committee on Customs expressed his serious concern on the letter issued by the NBP on July 21 which is being implemented from August 10, 2020. As per the letter, the NBP will issue receipt against the pay orders to importers and after the realization of the pay order the custom duty to be paid.
Mr. Shabbir Mansha said that the system which was effective for the last 70 years has now been abruptly changed when the business community is badly affected in the wake of COVID-19.
Pakistan’s trade with foreign countries will be seriously affected with this new system of NBP at Karachi Port and thousands containers will be stuck up at port. Secondly this system is not practically applicable because of frequent fluctuation in the exchange rate in Pakistan. By the encashment of payorder there is possibility of fluctuation in exchange rate and this will be never ending series and the bank will ask for payment of the difference amount. When the pay order is encash after three days, the exchange rate is likely to vary.
Similarly, it is ironic that the tax payer submits the pay order which is not treated as a duty. One side, his money will be blocked and on the other hand the terminal operators and shipping companies will charge demurrage and detention fee which will ultimately loss the production.
Mr. Shabbir Mansha, FPCCI urged the Prime Minister, the Finance Minister and the Governor SBP to take notice against this matter and take no decisions without consulting the FPCCI.