SBP facilitates exporters by restoring advance payment facility

KARACHI: The State Bank of Pakistan (SBP) has allowed the authorized dealers to effect advance payments up to US$10,000 per invoice on behalf of importers cum exporters for import of raw materials, accessories and spares.

Earlier, the SBP had restricted the advance payment facility in July 2018 which was previously allowed to importers through authorized dealers.

However on the intervention of the chamber of commerce and industry, trade associations and the ministry of commerce it has been decided to relax this ban to the extent of exporter who have to import accessories, raw material and spare-parts for their exports. It is expected that this will improve the export environment.

Earlier last month, the central bank declared an incentive scheme for the encouragement of home remittances.

According to the notification issued by the state bank, to promote domestic banks/ micro finance banks/ exchange companies which are offering home remittance payment services, a performance-based scheme has been initiated to augment their marketing/promotional/awareness efforts for home remittance products and services. The government will repay these expenses via SBP.