SBP urged to adopt 'drastic' pro-export policies

The President Sialkot Chamber of Commerce and Industry (SCCI) Muhammad Asharaf Malik has urged the State Bank of Pakistan (SBP) to adopt "drastic" policies to facilitate the export sector of the country. This he stated in a video link communication with Governor State Bank (SBP) on Monday.

The SCCI President during discussion further inform the SBP Governor that bank vide its FE Circular on 14 October 2019 had issued a framework for managing Risk of Trade Based Money Laundering and Terrorist Financing. The SCCI strongly encourages such reforms but we understand that certain clauses of the Circular have caused disruption in the export sector as authorized dealers ere misinterpreting the contents creating serious problems for the exporters and importers in processing their shipments adding that the ground realities of export industry were different then assumed by the SBP and authorized dealers.

The SCCI President further told SBP Governor that advance payments are not being processed and Form-E and Form-1 are not being issued due to misinterpretation of the clauses. The exporters of Sialkot he said deal with top international brands who get their shipments delivered to various locations around world and release the payments accordingly from source other than the destination of shipments adding that such a scenario is not being entertained by the authorized dealers which otherwise had continued for the last many decades.

The Commercial Banks have shifted their trade offices to Lahore, Islamabad and Karachi resulting in delayed processing of cases under the circular which is against the Ease of Doing Business Vision of the government he informed the SBP Governor. Under the prevailing circumstances he underscored the need of setting up Trade Offices of all commercial banks in Sialkot.

The SCCI President further informed the SBP Governor that the exporter/importer processing officials in trade offices and local stations of authorized dealers are not capable to fully understand the circular and to process the genuine cases of the industry and we suggest that SBP should directed all commercial banks to ensure rigorous training of the officers. The circular directs authorized dealers to collect information that is sensitive to the export sector of Sialkot including names and contact details of the clients, pricing and terms of agreement and others.

The SCCI President further added that this practice poses a great risk of information breach as the client information is of extreme importance of the exporters. The SCCI President further stated that keeping view the conversation the SBP should facilitate the export sector by allowing processing of payments accordingly from source other than the destination of the shipment and send delegation of policy makers to meet the export and import sector of Sialkot and understand the modalities and issue that being faced by the genuine businessmen so that same could be addressed.

A detailed awareness session should be arranged of all stakeholders including exporters, importers and authorized dealers for elimination of confusion the SCCI President suggested.