Govt to roll back import restrictions from January 2

ISLAMABAD: The federal government has decided to roll back the restrictions imposed on imports from January 2, 2023, in a bid to facilitate the industrialists and business persons, ARY News reported on Tuesday.

According to details, the development was announced by State Bank of Pakistan (SBP) in a circular addressed to the presidents and chief executives of all authorised dealers (Ads) in foreign exchange.

“Attention of the authorised dealers (ADs) is invited to EPD Circular letter No.9 of May 20, 2022 and Circular letter No. 11 of July 5, 2022 wherein ADs were required to seek prior permission from Foreign Exchange Operations Department SBP-BSC before initiating any import transaction pertaining to HS Code Chapter 84, 85 and certain items of Chapter 87,” the circular stated.

The SBP noted it has been decided to withdraw the instructions from January 2, 2023.  “Consequently, requests for import transactions already submitted to SBP-BSC pertaining to above referred HS Codes stand returned to the ADs for appropriate disposal at their end,” it added.

However, the circular added that ADs may prioritise or facilitate imports under essential imports, energy imports, imports by export-oriented industry, imports for agriculture inputs, deferred payment/self-funded imports and import for export-oriented projects near completion.

The SBP further said that ADs may actively engage with all their customers to process their requests, keeping in view the customers’ risk profile and liquidity conditions prevailing in the foreign exchange market. It advised the authorised dealers to bring the above instructions to the notice of all their constituents.

Earlier in December, the State Bank of Pakistan (SBP) rejected the rumours about the restrictions imposed on the opening of Letters of Credit (LCs) or contracts for the import of crude oil, liquefied natural gas (LNG) and other petroleum products.

In a statement, the central bank said it has not placed any restriction on opening of Letters of Credit (LCs) or contracts for import of crude oil, LNG and petroleum products.

“Such misinformation is being spread with ulterior motives to create uncertainty in the market,” the central bank added.