SBP team visits LCCI for interactive session with business community members

LAHORE: A team of State Bank of Pakistan on Thursday visited the Lahore Chamber of Commerce and Industry to have an interactive session with the business community. On the occasion, the issues of circular 11 dated July 5th, chapter 84-85-87, Letter of Credit, foreign exchange shortage, lack of cooperation by the banks and interbank dollar rate came under discussion.

Deputy Chief Manager of State Bank of Pakistan Muhammad Tahir, LCCI President Mian Nauman Kabir, LCCI Senior Vice President Mian Rehman Aziz Chan, Vice President Haris Ateeq, Khawaja Khawar Rashid, Muhammad Haroon Arora, Zeeshan Khalil, Shahid Nazir, Mudassar Masood Chaudhry, Yasir Khursheed and others were present on the occasion.

The participants said that the condition of prior approval from the State Bank for the import of electrical machinery, equipment, parts and motor vehicles under the Circular 11 dated July 5 chapter 84-85-87 should not be applied to those orders which have already been placed or the consignments have arrived at the ports otherwise it will cause heavy loss to the importers.

They said that the measures to control the trade deficit are good but it is also important to protect the stakes of importers who have placed orders prior to the issuance of the circular 11.

They said that the banks are not releasing the imports documents and are also charging extra amount from the inter-bank rate. They said that the business community is unable to understand the mechanism of inter-bank dollar rate. They said that the variation in inter-bank rate has made it hard for the business community to plan their orders.

They said that the banks are opening the letters of credit for prioritized industry. They said that the business community is backbone of the economy and is in a dire need of handholding by the State Bank of Pakistan.

Meanwhile, in a statement, former president of the Lahore Chamber of Commerce & Industry Shafqat Saeed Piracha said that banks should immediately release the documents related to the import consignments so that the importers can avoid huge loss.

He also said that the banks are reluctant to release the import documents. The industrial sector is facing issues because of consignments stuck at ports. The stuck consignments will ultimately hit the exports of the country. He said that the importers have already lost millions of rupees due to rupee devaluation. The banks should release the import documents with immediate effects to avoid further financial loss to the importers.

He also urged the State Bank of Pakistan to take notice of the exploitation of the business community by the banks who are demanding amount above the inter-bank dollar rate. He said that the business community is already facing severe economic challenges while the lack of support by the financial institution is making it hard to do businesses.

Copyright Business Recorder, 2022