KARACHI: The State Bank of Pakistan (SBP) on Friday announced withdrawal of all restrictions on imports to facilitate the industrial sector.
In December last year, the SBP asked banks to prioritize/facilitate imports related to essential items, energy, agriculture inputs, imports by export-oriented industry, and imports on deferred payment basis.
However on Friday, the SBP has decided to withdraw these instructions.
“In view of the representations received from various stakeholders, it has been decided to withdraw these instructions with immediate effect,” a circular issued by the SBP said on Friday.
Furthermore, according to SBP, the instructions contained in EPD Circular Letter No. 09 dated May 20, 2022 and EPD Circular Letter No. 11 dated July 05, 2022 shall remain withdrawn.
As per previous instructions issued in December, banks were advised to actively engage with all their customers to process their requests, keeping in view the customers’ risk profile and liquidity conditions prevailing in the foreign exchange market. This instruction has also been withdrawn by the central bank.
In addition, as per May and July instructions, the SBP imposed some restrictions on imports and directed banks for the prior permission from Foreign Exchange Operations Department (FEOD), SBP-BSC before initiating transactions for import of several goods pertaining to HS Code Chapter 84, 85 and certain items of Chapter 87. These instructions have also been withdrawn by SBP. Industry sources said this step has been taken to meet the IMF conditions.