KARACHI: State Bank of Pakistan (SBP) has allowed imports on open account for the import of raw materials and spare parts to facilitate small and medium manufacturing units and commercial importers.
The SBP in a circular issued on Tuesday said that F.E. Circular No. 07 dated July 20, 2018 whereby imports on open account basis was confined to industrial and manufacturing sector only for import of raw materials and spare parts for their own use.
These instructions were amended vide EPD Circular Letter No. 13 dated August 29, 2018 and EPD Circular Letter No. 15 dated September 14, 2018 to allow open account imports for specified sectors.
In order to facilitate small and medium manufacturing units and commercial importers, the above instructions have been further modified.
Henceforth, Authorized Dealers are allowed to effect import payments on open account basis on behalf of manufacturing and industrial users and commercial importers for import of raw materials and spare parts only to be used as input by the manufacturing/industrial concerns.
Authorized Dealers are advised to ensure meticulous compliance of above and other applicable regulatory instructions including those of Para 6, Chapter 2 of Foreign Exchange Manual which requires them, inter alia, to satisfy themselves that the transaction will not involve and is not designed for the purpose of contravention or evasion of any of the provisions of the Foreign Exchange Regulation Act, 1947 or of any rules, directions or orders issued thereunder.