Tag: cash margin

  • SBP withdraws cash margin requirements on imports from March 31

    SBP withdraws cash margin requirements on imports from March 31

    KARACHI: State Bank of Pakistan (SBP) on Friday announced to withdraw cash margin requirements on imports from March 31, 2023.

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  • SBP relaxes cash margin restriction on import

    SBP relaxes cash margin restriction on import

    KARACHI: The State Bank of Pakistan (SBP) has relaxed restriction on cash margin requirement on imported items.

    According to a circular issued on August 05, 2022, the SBP said that banks were required to maintain 100 percent cash margin against certain items of import (HS codes), regardless of the mode of payment.

    READ MORE: SBP advises banks to issue digital verification for remittances

    In this regard, it has been decided to relax the 100 percent cash margin requirements where the credit terms of import are more than 90 days; accordingly, the banks shall obtain cash margins as per the revised percentages given in the below table:

    Term of Payment from ImportApplicable Instructions for Cash Margin Requirement (CMR)
    91 to 180 Days25%
    181 Days and above0%

    Based on the tiered-approach in Para 2 above, the cash margin requirements shall be applicable on the Rupee equivalent amount of the import transaction.

    READ MORE: SBP takes regulatory action against TAG Innovation

    It may be noted that the above instructions shall be applicable on all new import transactions initiated by the bank after the issuance date of this circular letter. However, on already initiated import transactions, the instructions may only be applied if the amendments (in terms of payment) are made subsequent to the date of the issuance of instructions in accordance with above table.

    The cash margins deposited by importers on all items subject to CMR would be non-remunerative.

    READ MORE: SBP launches crackdown against exchange companies

  • SBP issues list to impose 100% cash margin on import

    SBP issues list to impose 100% cash margin on import

    KARACHI: The State Bank of Pakistan (SBP) on Thursday issued a list of 177 items for imposing 100 per cash margin on import with immediate effect.

    In this regard, it has been decided that banks, with immediate effect, shall obtain 100 percent cash margin on the import of items as listed in the enclosed Annexure-A. The cash margins on these specific items will remain in place till December 31, 2022, the central bank said in a circular.

    READ MORE: SBP imposes 100% cash margin on imported items

    The cash margins deposited by importers on all items shall be non-remunerative.

    The SBP further said that to ensure effective monitoring, banks are required to submit details of cash margins, applicable on all items, collected from importers on monthly basis, as per format at Annexure-B.

    Data for ongoing month should be reported to Statistics & Data Ware House Department latest by the 10th of the following month.

    Further, monthly data for the period September 2020 to March 2022 is required to be submitted on the same format latest by June 30, 2022.

  • SBP imposes 100% cash margin on imported items

    SBP imposes 100% cash margin on imported items

    KARACHI: The State Bank of Pakistan (SBP) on Thursday imposed 100 per cent cash margin restriction on import of additional 114 items.

    The SBP in a notification referred to BPRD Circular No. 02 of 2017 and BPRD Circular No. 5 of 2018 on the captioned subject, as amended from time to time.

    In that regard, it has been decided that banks, with immediate effect, shall obtain 100 percent cash margin on the import of items listed below.

    Furthermore, it has been decided to waive the condition of 100 percent cash margin requirement on imports made against HS Code 8414.8090-Air Pumps and Gas Compressors (S. No. 17 of Annexure-A of BPRD Circular No. 05 of 2018).

    All other instructions contained in the aforementioned Circulars shall, however, remain unchanged.

    List of Items to be subjected to 100% Cash Margin Requirements

    S. NoHS CodeDescription
    19041110PEPPER,BLACK,CRUSH NOT GROUND
    29083120SMALL CARDAMONS NITHER-CRU/GRO
    312024200GROUND-NUTS SHELLED BROKEN/N-B
    412030000COPRA
    514049020BETAL LEAVES
    615132900OTH PALM KERNEL/BABASSU OIL
    715162010VEGETABLE FAT & ITS FRACTIONS
    815179000OTH MARGARIN,EDIB MIX/PREP ETC
    923040000OIL-CAKE/OTH S/RESID SOYABEAN
    1023066000OIL CAKE/OTH RESIDUE,PALM NUTS
    1123099000OTH PREPARATION FOR ANIMAL FEE
    1224012000TOBACO-WHOLY/PARTLY STE/STRIP
    1363014000BLANKET/TRAVEL RUGS OF SYN FIB
    1469072119OTH FLAGS,PAVING WAT AB 0.5%
    1569072219OTH FLAGS,PAV WAT AB >0.5%<10%
    1669072390OTH,CERAMICS WAT AB >10%
    1770109000OTH CARBOYS BOTT,FLASK,JAR,POT
    1870134900O-GL-WARE L-C-EX=5×10 T,0-300C
    1985444990OTH MULTI CORE CABLE
    2087059000OTH SPECIAL PURPOSE MOTOR VEHL
    2187082939BODY PARTS OF OTHER VEHICLES
    2287084090OTH GEAR BOXES/PART OTH VEHICL
    2387141020COMPPONNENT FOR VEHICLE-H-8711
    241019000OTHER LIVE ANIMALS
    250805OTHER SIMILAR CITRUS HYDRIDS (0805.2100,0805.2200,0805.2910,0805.2990)
    260808PEARS AND QUINCES, FRESH (0808.3000,0808.4000)
    279081100NUTMEG NEITHER CRUSHED/GRO
    289083110LARGE CARDAMOMS NITHER-CRU
    2910049000OTHER OATS
    3010061090OTH RICE IN HUSK (PADDY/RO
    3110079000OTHER GRAIN SORGHUM(JAWAR)
    3212024100OTH GROUND NUTS IN SHELL
    3322029100NON-ALCOHOLIC BEER
    3422029900OTH WATER
    3534011910OTHER BABY WIPES
    3634011990OTH,SOAP ORG-SURFAC-ACT PR
    3740112011RADIAL RUBB TYRE FOR LIGHT
    3840112019OTH RUBB TYRE FOR LIGHT TR
    3940112091RADIAL TYRE RUBBER FOR BUS
    4040112099OTH PNEUM TYRE RUBBER FOR
    4140114000NEW PNEUM TYRE RUBB MOTORC
    4269072111TILES POLISHED WAT AB 0.5%
    4369072190OTH,CERAMICS WAT AB 0.5%
    4469072211TILE POLISHED WAT AB >0.5%
    4569072290OTH,CERAMICS WAT AB >0.5%<
    4669072319OTH FLAGS,PAVINGS WAT AB >
    4769073000MOSAIC CUBES AND SIMLAR AR
    4869074000FINSHING CEREMICS
    4973211119OTHER COOKING RANGES
    5084151019OTH WINDOW/WALL TYPE AC/SP
    5184151029S-CON AC/SPLIT INER-OUTER
    5284151039TROPICAL MPS MUL-SYS UNIT>
    5384151099OTH AC MACH MOTOR DRIVEN F
    5484158190O-AC INCOR REFRI UNIT VALV
    5584158290O- AC INCOR REFRIGIRATING
    5684158390O-AC NOT INCROPO REFRIG UN
    5784181090OTH COMB REFRIG-FREEZ W-DO
    5884182190OTH REFRIG H-HOLD COMPRES
    5984182990OTH REFRIGERATOR HOUSHOLD
    6084183090OTH FREEZER CHEST TYPE-800
    6184184090OTH FREZER UPRIGHT TYP-900
    6284191190OTH INST GAS WATER HEATER
    6384501190OTH WASHIN MACH FUL-AUT NO
    6484501290O-MACH BUILT-CENTRIFUGAL D
    6584501919OTH WASH MACH SEMI AUTO<10
    6684501999O-MACH DRY LINE CAPA -NOT>
    6784502090MACHINE DRY LINE CAP EXCE1
    6885165090MICROWAVE OVENS
    6985287211LIQUID CRYSTAL DISPLAY(LCD
    7085287219OTH COLOR TV SETS
    7185287290OTH RECEPTION APPARAT COLO
    7285393110ENERGY SAVING LAMPS
    7387081010BUMPERS (SHET METAL)VEH H-
    7487141010SADDLES OF MOTORCYCLES,MOP
    7515091000OLIVE OIL & ITS FRACT (VIR
    7615099000OTH OLIVE OIL & ITS FRACTI
    7715131100COCONUT OIL,ITS FRACTION C
    7815131900OTH COCONUT OIL,ITS FRACTI
    7915171000MARGARINE,EXCL LIQUID MARG
    8024011000TOBACCO,NOT STEMMED/STRIPP
    8169149000OTH CERAMIC ARTICLES O/TH
    8270099100UNFRAMED GLASS MIRRORS
    8370099200FRAMED GLASS MIRRORS
    8414049049OTH VEGE MATE USED FOR BRO
    8515162020VEGETABLE OILS & ITS FRACT
    8616010000SAUSE,PROD MEAT-FOOD PREP
    8732089090OTH PAINT BASED ON SYN.POL
    8835069190OTH POLYMER BASE ADHESIVE
    8938089110MOSQUITO COIL, MATE&THE LI
    9038121000PREPARED RUBBER ACCELERATO
    9139199090OTH SELF-ADHESIVE FILM,FOI
    9240094190OTH HOSES MADE OF RUB+OTH-
    9340111000NEW PNEUM TYRES FOR MOTOR
    9444111200(MDF)THICKNESS NOT EXCEEDI
    9548025600OTH PAPER&PAPERBOARD IN SH
    9648026200OTH PAPER&PAPER BOARD IN S
    9748030000TOILET FACIAC TISSUE/TOWEL
    9848041100KRAFTINER UN COATED UN-BLE
    9948042100SACK KRAFT PAPER,UNBLEACHE
    10048101390OTH WRIT/READ GRAPHIC IN R
    10148101990OTH WRITING PAPER/PAPERBOA
    10248132000CIGRETTE PAPER IN ROLL WTH
    10348139000OTH CIGARET PAPER,BOOKLET/
    10463080000SETS OF WOVEN FABRICS AND
    10564059090FOOTWEAR OF OTHER MATERIAL
    10668022100MARBLE,TRAVETINE & AIABAST
    10768022300GRANITE
    10868022900OTHER BUILDING STONE CUT/S
    10968029100OTH MARBL TRAVERTIN&ALABAS
    11068029300OTHER GRANITE
    11168029900OTHER STONE
    11270139900O-GLASSWARE INDOOR DECORAT
    11396190020SCENT SPRAY SIMI TOILET SP
    11496190030SCENT SPRAY SIMI TOILET SP
  • Imposition of 100% cash margin on imports likely

    Imposition of 100% cash margin on imports likely

    KARACHI: A 100 per cent cash margin requirement on imports to be imposed in order to discourage rising foreign purchases, market sources said on Wednesday.

    The sources said that restriction on cash margin has been imposed to discourage import and support balance of payment.

    The rupee is continuously falling and making lows for the past several days. The rupee fell to a new record low of Rs170.48 to the dollar in the interbank foreign exchange market on September 29, 2021.

    The sources said that the condition of 100 per cent cash margin requirement on import of some medical items may not apply.