Introducing a new pro-business policy, the State Bank of Pakistan (SBP) officials said in a press conference on Tuesday that the importers can now make advance payments of $10,000 or equivalent/invoice for raw material imports. President SBP Reza Baqir, while addressing the media said that the decision has been taken after a stable exchange rate has been achieved and when Pakistan has made significant improvements in the ‘ease of doing business list’.
He added that, “Permission of Foreign Exchange Operations Department (FEOD) and SBP-Banking Services Corporation, was required from foreign exchange perspective, by firms/companies in Pakistan, intending to acquire any type of service in Pakistan. But, now this restriction has been removed.” Now the businessmen can import their industry raw material from abroad, without any permission from FEOD, if the invoice does not exceed $10,000.
He added that, “We are trying to improve things step by step and are going in a phase-wise manner to improve the business environment in the country. We would increase the size of payments for large manufacturers after experiencing the current decisions which are meant for small and medium enterprises.” He said that these terms would help the SME sector a lot and the government is working towards facilitating the large manufacturers as well.
The president further said that the financing limit under Export Financing Scheme (EFS) and Long Term Financing Scheme (LTFS) would be increased gradually to Rs100 billion. He further added that all these policy changes are being introduced following the IMF conditions.