LAHORE: Importers and clearing agents have welcomed State Bank of Pakistan (SBP) advice to banks for providing a one-time facilitation to all those importers who could either extend their payment terms to 180 days (or beyond) or arrange funds from abroad to settle their pending import payments.

They said the SBP has taken the initiative after a demand raised by importers during their interaction with Governor SBP last week, letting 5,700 containers laden with food, medicine and industrial raw materials waste away at port for months on end.

They said the importers had assured of submitting an affidavit to the SBP for not paying before next 200 days. Many of them had approached banks pressuring them to clear their consignments, which led to their interaction with Governor SBP.

Both importers and clearing agents were found sharing the SBP circular with each other throughout Monday. They said the shipments/goods that have already arrived at a port in Pakistan or have been shipped on or before January 18, 2023 would be released since payment against them would be up to 180 days or beyond.

Sources from among the clearing agents community pointed out that it was becoming difficult for them to meet their both ends due to the prevailing uncertainty therefore they had demanded Governor SBP of let those containers be cleared payment against whom payment terms could be extended to 180 days or beyond and where funds could be arranged from abroad to settle pending payments.

As the country’s foreign exchange reserves declined rapidly last year, the central bank imposed import curbs in order to minimize dollar outflows. However, this has negatively affected the industry, with large-scale manufacturing shrinking for three consecutive months. Several companies have partially suspended operations in recent weeks citing inventory shortages due to the curbs.

Copyright Business Recorder, 2023