LAHORE: While expressing solidarity with the traders who are facing challenges due to non-release of their containers, the Lahore Chamber of Commerce and Industry made a passionate appeal to the finance minister to resolve this issue without any delay.
LCCI President Kashif Anwar, Senior Vice President Chaudhry Zafar Mahmood and Vice President Adnan Khalid Butt feared further increase in unemployment and said that a large number of manufacturing units have reached on the verge of closure due to non-availability of raw materials.
They said that the silence of concerned authorities on this issue is not only surprising but alarming. They said that finance minister and the SBP should intervene immediately otherwise the economic situation will be further aggravated.
They said that LCCI members have complained regarding banks which are taking full advantage of the helplessness of the business community and not only denying opening of LCs but are also over charging from the interbank rate.
“It seems that banks are independent and are not answerable to any authority as no one is asking them for what they are doing,” they added.
They said that many of LCCI members have also complained regarding difficulties they are having with imports as a result of the State Bank of Pakistan’s recently issued EDP Circular No 09 and No 11 which demand prior approval from the Foreign Exchange Operations Department before initiating transactions for imported goods (Chapter 84 and 85).
As a result, there is a long delay in the release of shipping documents from the commercial banks, leading to delay in the processing of cargo at the port, for which importers have to pay exorbitant demurrage, port charges and detention fees, which add to their landed cost.
The LCCI office-bearers said that in the case of Documents Presentation, as soon as Bill of Lading is issued by the shipping line at the port of loading, importers should be allowed to submit their case for approval against copy Bill of Lading to SBP through their banks. This will help to get approval timely and get the documents before the consignment arrives at port.
They said as the Letter of Credit is backed by the guarantee from the State Bank, no prior approval be required. In case the shipping documents are received on a deferred payment, DA basis, same should be released by the commercial banks without approval immediately.
They said that the business community is the backbone of the economy as the government generates more than 90 percent of its total resources from this sector therefore it can make a great contribution in turning Pakistan into one of the greatest nations in the world provided due facilitation and an enabling business doing atmosphere are ensured.
They said that the economy is already facing severe challenges and lack of cooperation from the banking sector to the business community will add fuel to the fire as without a due role of the businessmen, it will be almost impossible to put economy back on track.
“Instead of being a silent spectator, the State Bank of Pakistan should take immediate notice of the miseries of the business community and issue directions to all the banks to open Letter of Credits without any hindrance,” they added.
Copyright Business Recorder, 2022