SBP announces measures to support export-oriented, manufacturing sectors
KARACHI: State Bank of Pakistan has allowed exporters to directly dispatch shipping documents of their exports’ consignment to their foreign buyers without any limit, subject to condition that an exporter’s export over-dues are less than one percent and the exporter has exports of at least dollars five million during the previous three years.
The Central Bank has done this in an effort to further facilitate the exporters as well as the manufacturing sectors. Earlier, exporters could dispatch the shipping documents directly to their foreign buyers for export consignments of up to dollars 100,000 or equivalent in other currencies. This limit was in place since 2017, said an SBP statement.
Moreover, State Bank has enhanced the existing limit of $ 10,000 or equivalent in other currencies, per invoice allowed to banks to make advance payment on behalf of manufacturing and industrial concerns and commercial importers for import of raw material, spare parts and machinery to $ 25,000.
These measures are in continuation of facilitating export-oriented industries and manufacturing concerns in the backdrop of ease of doing business and promoting exports’ growth and will further contribute in improving economic outlook of the country.
It is pertinent to mention here that in January 2020, SBP had taken certain measures to facilitate export-oriented industries and manufacturing concerns.
These included: Extending the facility to make advance payment up to $ 10,000 or equivalent in other currencies, per invoice, for import of raw material, spare parts and machinery to commercial importers as well in addition to manufacturing and industrial concerns, allowed earlier.
SBP has allowed its authorized dealers to effect import advance payment against irrevocable letter of credit, up to 100% of the value of letter of credit, for import of plant, machinery, spare parts and raw material etc. on behalf of manufacturing concerns for their own use only. - APP