ISLAMABAD: The Rawalpindi Chamber of Commerce and Industry (RCCI) has expressed grave concerns over the delay in opening Letters of Credit (LCs) and urged federal Minister for Finance Miftah Ismail to order the opening of LCs immediately.
RCCI President Nadeem Rauf has said that many industries are now facing a shortage of raw materials and are on the verge of cutting production. He said that key products especially under HS code 84 and 85 include home appliances, air conditioners, IT products, generators, telecom, steel and automobiles. Importers are worried due to non-opening of LCs.
Factories importing raw material for producing food, medicines and iron are now facing serious supply constraints. “Due to non-release of our import documents and consequent non-availability of raw material, the manufacturing units are on the verge of closure,” he said.
He said that despite, the lifting of the import ban by the government, delay in opening LCs for essential machinery, equipment and spare parts is a matter of grave concern for traders.
Nadeem Rauf said that the current economic situation is very disturbing; SMEs and large-scale industry (LSM) are suffering a lot.
Production has stopped due to non-availability of parts, bank payments are not being made, operational expenses are also becoming difficult to meet, which has increased the fear of unemployment, he added.
He said that large firms in Pakistan rely on imported raw materials/ parts, which run our industries. He appealed to the finance minister and governor State Bank to take immediate notice of the situation and open LCs.
Copyright Business Recorder, 2022
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