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SBP withdraws advance payment facility for imports

SBP withdraws advance payment facility for imports

KARACHI: The State Bank of Pakistan (SBP) has withdrawn the facility of advance payment against imports with immediate effect.

According to a circular issued by the SBP stated that authorized dealers were allowed to make import advance payments against irrevocable Letters of Credit (L/C) up to 100 percent of the value of the goods and up to $10,000 per invoice for the import of all eligible items without the requirement of L/C or Bank Guarantee from the supplier abroad.

In this regard, it has been decided by the State Bank of Pakistan that the above facility, allowed to authorised dealers to make advance payment, stands withdrawn.

However, in case, authorised dealers deem that a request on the subject merits consideration, they may approach State Bank of Pakistan along with appropriate recommendations on a case to case basis.

All other instructions on the subject shall remain unchanged. Authorized dealers are advised to bring the above instructions to the notice of all their constituents and ensure meticulous compliance, the SBP further advised the dealers.