KARACHI: The State Bank of Pakistan (SBP) on Saturday has withdrawn the facility of advance payment against imports.
The SBP, in a circular issued on Saturday said authorised dealers were allowed to make import advance payments against irrevocable Letters of Credit (L/C) upto 100 percent of the value of the goods and upto $10,000 per invoice for the import of all eligible items without the requirement of L/C or Bank Guarantee from the supplier abroad.
In this regard, it has been decided by the Central Bank that the above facility, allowed to authorised dealers to make advance payment, stands withdrawn with immediate effect.
However, in case, authorised dealers deem that a request on the subject merits consideration, they may approach State Bank of Pakistan along with appropriate recommendations on a case to case basis, SBP added.
All other instructions on the subject shall remain unchanged. Authorized Dealers are advised to bring the above instructions to the notice of all their constituents and ensure meticulous compliance, the SBP further advised the dealers.
