SBP introduces amendments to facilitate SMEs, importers

• Authorized Dealers are allowed to effect advance payment up to USD 10,000/-, or equivalent thereof, per invoice on behalf of manufacturing/industrial concerns.

The State Bank of Pakistan (SBP) has modified instructions regarding open account imports, in order to facilitate small and medium manufacturing units and commercial importers.

As per the central bank, the Authorized Dealers are allowed to effect import payments on open account basis on behalf of manufacturing & industrial users and commercial importers for import of raw materials and spare parts only to be used as input by the manufacturing/industrial concerns.

Previously, the imports on open account basis was confined to industrial and manufacturing sector only for import of raw materials and spare parts for their own use. These instructions were then amended to allow open account imports for specified sectors.

The central bank advised Authorized Dealers to ensure meticulous compliance of above and other applicable regulatory instructions.

Furthermore, the State Bank has also issued amendments in instructions regarding advance payment against imports. As per latest amendments, Authorized Dealers are allowed to effect advance payment up to USD 10,000/-, or equivalent thereof, per invoice on behalf of manufacturing/industrial concerns and commercial importers for import of raw material, spare parts and machinery for ultimate use by the manufacturing/industrial concerns.

Authorized Dealers are allowed 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.

Furthermore, Authorized Dealers are allowed 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.