Karachi, July 24, 2023 – The Karachi Chamber of Commerce and Industry (KCCI) voiced strong discontent on Monday over the persistent refusal of commercial banks to open letters of credit (LCs), hindering import payment processes and causing mounting concerns among traders and industrialists.
KCCI President Tariq Yousuf urgently called upon the Finance Minister and the Governor of the State Bank of Pakistan (SBP) to intervene and address the ongoing violations by the banks. “The continuous denial of LC openings by banks is causing deep concerns for traders and industrialists dealing with raw materials,” Yousuf expressed.
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According to reports, complaints regarding the denial of LCs have been surging day by day, with no signs of any bank willing to open LCs. Finance Minister Ishaq Dar and State Bank Governor Jameel Ahmed have been urgently urged to take strict notice of these refusals by the Karachi Chamber President.
The KCCI has accused all banks of consistently breaching government promises and assurances, raising concerns that the situation is edging closer to an impending disaster. Expressing his worries, Tariq Yousuf asserted that the economy, businesses, and revenues are at risk, and immediate government intervention is crucial to avert further crises.
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“It appears that banks have been granted a free hand in their actions, and even the State Bank is not taking any action to rectify the situation,” President Yousuf remarked.
Industrialists have joined the chorus of concerns, demanding uninterrupted access to revenues for the importation of raw materials. The lack of LC openings has significantly impacted the smooth functioning of industries, potentially leading to a shortage of vital raw materials.
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The KCCI’s appeal for immediate action underscores the urgency of the situation. With traders and industrialists anxiously awaiting a resolution, all eyes are now on the Finance Minister and the Governor of the State Bank of Pakistan to address the pressing issue and facilitate a solution that safeguards the interests of the business community and ensures the smooth flow of international trade.
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In light of these developments, the nation watches intently as the authorities take action to restore confidence in the banking sector and pave the way for a stable and prosperous economy.
