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Tag: import

  • Pakistan exports plunge 18.34pc in November 2021

    Pakistan exports plunge 18.34pc in November 2021

    ISLAMABAD: Pakistan exports have registered 18.34 per cent decline Year on Year (YoY) in November 2022 owing to import restrictions and slowdown in global demand.

    Data released by Pakistan Bureau of Statistics (PBS) on Thursday revealed that exports fell to $2.37 billion in November 2022 when compared with $2.9 billion in the corresponding month last year.

    READ MORE: Pakistan’s import restrictions help narrowing trade deficit by 27%

    Imports of the country recorded 33.60 per cent decline to $5.245 billion in November 2022 when compared with $7.9 billion in the same month of the last year.

    This resulted contraction in trade deficit of 42.46 per cent to the deficit of $2.876 billion in November 2022 as against $5 billion in the same month of the last year.

    READ MORE: Pakistan import bill falls by 12.72% in 1QFY23

    The decline in exports can be attributed to the restrictions imposed on imports which hampered industrial and export activities. Furthermore, global slowdown also added to export fall.

    Meanwhile, exports recorded a nominal decline of 0.63 per cent to $2.37 billion in November 2022 when compared with previous month of September 2022 at $2.38 billion.

    However, imports recorded an increase of 11.34 per cent to $5.24 billion on Month on Month (MoM) in November 2022 when compared with $4.71 billion in the previous month.

    READ MORE: Pakistan trade deficit narrows by 17% in 2MFY23

    This brings the widening of trade deficit by 23.59 per cent to $2.876 billion in November 2022 when compared with the deficit of $2.33 billion in September 2022.

    Overall trade deficit during first five months (July – November) 2022/2023 contracted by 30.14 per cent to $14.41 billion when compared with the deficit of $20.62 billion in the corresponding months of the last fiscal year.

    READ MORE: Pakistan’s trade deficit narrows by 18% in July 2022

    Exports of the country recorded 3.48 per cent decline to $11.93 billion during first five months of the current fiscal year as against $12.36 billion in the same months of the last year.

    Whereas, import bill fell by 20.15 per cent to $26.34 billion during the period of July – October of fiscal year 2022-2023 as against $32.98 billion in the same period of the last fiscal year.

  • ECC approves clearance of banned items landed till August 18, 2022

    ECC approves clearance of banned items landed till August 18, 2022

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved the customs clearance of banned items, which landed till August 18, 2022.

    Federal Minister for Finance and Revenue Miftah Ismail virtually presided over the meeting of the ECC. Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khurram Dastgir Khan, Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmmod, Federal Minister for National Health Services, Regulations and Coordination Abdul Qadir Patel, MNA/ex-PM Shahid Khaqan Abbasi, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Coordinator to the PM on Economy Bilal Azhar Kayani, Chairman NDMA, Chairman FBR, Federal Secretaries and senior officers attended the meeting.

    READ MORE: USC to disburse ration bags worth Rs540 million to flood victims

    The ECC considered a summary of Ministry of Commerce on clearance of stuck up consignments in light of office memorandum dated 22 July, 2022, 19 August, 2022 and 23 August, 2022 issued by Ministry of Commerce.

    The ECC approved the proposal and directed that the consignments of previously banned items that landed in Pakistan till August 18, 2022 may be released at the rate of surcharge.

    Ministry of National Health Services, Regulations and Coordination presented a summary for exemption of Active Pharmaceutical Ingredients (APIs) from Custom Duty and Additional Custom Duty.

    READ MORE: Pakistan State Oil gets Rs30 billion to avoid default

    The ECC after discussion directed Ministry of National Health Services, Regulations and Coordination to withdraw the summary and submit a fresh summary to rationalize price of paracetamol to ensure its availability.

    The summary presented by Ministry of National Food Security and Research regarding import of Wheat through Gwadar sea port was deferred by ECC.

    National Disaster Management Authority (NDMA) presented a summary for allocation of funds for procurement and logistics of relief items for flood affectees and apprised about devastation caused by the recent floods in Pakistan. In order to provide immediate relief to the flood affectees, NDMA started procurement on emergency basis costing Rs. 2.4 billion.

    READ MORE: Pakistan decides to lift ban on imported goods

    Due to colossal damages, the already procured items are not sufficient viz-a-viz relief requirement in the flood affected areas.

    Therefore, NDMA placed orders for procurement of more items at cumulative cost of Rs. 7.113 billion, which are being procured in emergency to provide relief to affectees. Previously, NDMA was allocated Rs. 8 billion for procurement and logistics cost of relief items to the flood affectees.

    READ MORE: 15% surcharge imposed for clearance of banned items

    The amount was insufficient as the cost of only procurement has surpassed Rs. 9.5 billion. Besides procurement, NDMA is also undertaking logistics of all relief goods and materials provided by friendly countries.

    Foregoing in view, the ECC approved allocation of Rs. 10 billion to National Disaster Management Authority (NDMA) with direction to the Finance Division to immediately release Rs. 5 billion to NDMA.

  • FPCCI rejects central bank’s claim of ‘no import restriction’

    FPCCI rejects central bank’s claim of ‘no import restriction’

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday strongly rejected the claim of the central bank regarding no restriction on imports.

    FPCCI’s acting president, Suleman Chawla in a statement categorically refuted the claims and assertions made by the State Bank of Pakistan (SBP) that there are no restrictions in place on import of raw materials.

    READ MORE: No restriction on imports, SBP clarifies

    Import payments not being cleared swiftly by SBP are resulting in disruptions in industrial production; unbearable demurrages and container charges; loss-making delays in fulfillment of export orders; inflationary pressures in the domestic markets and compounding of discouraging investor sentiments, he added.

    Acting FPCCI Chief explained that due to the unavailability of foreign exchange, continuous rupee depreciation, speculative trading and delays by SBP, manufacturers and commercial importers are in a jeopardy and exports have started to fall. The country will suffer due to the dwindling exports, increasing trade deficit and yawning current account deficit (CAD), he added.

    READ MORE: Pakistan’s apex body wants fixed exchange rate regime

    Suleman Chawla has maintained that SBP has failed in exercising its constitutional duties of effectively regulating the commercial banks through various policy tools at its disposal; and, commercial banks are making windfall profits through speculative trading of dollars.

    FPCCI has time and again reminded SBP, in no uncertain terms, of their responsibilities to control commercial banks; but, it is always unfruitful & goes in vain, he added.

    Acting FPCCI President emphasized that dollar is trading in the open market at a premium of PKR. 8 – 10 and it is a glaring testimony of the fact that the importers are not being able to source the dollars that they need to fulfill their import contracts and related commercial transactional procedures from the banking channels. It will only aggravate the situation and promote the informal open market, he added.

    READ MORE: KCCI managing committee candidates elected unopposed

    Chawla pointed out that there are still difficulties in opening LCs with commercial banks under chapter 84 & 85 of the custom tariff; despite the claimed circular issued by SBP to the commercial banks and that reflects badly on SBP’s ability to implement its regulatory role. However, he emphasized, SBP has all the means and policy tools to implement its decisions & circulars.

    Engr. M. A. Jabbar, VP FPCCI, highlighted that despite taking responsibility of its failure, SBP has resorted to blaming the industrialists and their representatives; who are already under unprecedented strains due to the various other factors in addition to the dearth of dollars in the banking channel.

    READ MORE: APTMA demands immediate release of textile machinery

    Engr. Jabbar added that FPCCI sees SBP’s conduct as detrimental to industrial growth, an utter lack of responsibility, insensitivities to people’s sufferings due to depleting employment opportunities, debilitating inflation and counterintuitive coupled with lack of initiative to fulfill its mandated duties.

  • No restriction on imports, SBP clarifies

    No restriction on imports, SBP clarifies

    KARACHI: State Bank of Pakistan (SBP) on Tuesday clarified that there is no restriction on import of raw material for any industry.

    In a statement the central bank said that lately, some media reports and representatives of trade organizations have claimed that banks are not opening Letters of Credit (LCs) for essential raw materials including pharmaceuticals.

    READ MORE: State Bank suspends two exchange companies

    “This is contrary to the facts. It is clarified that there is no restriction on the import of raw material for any industry including export-oriented industry,” the SBP added.

    It is further clarified that SBP has advised banks, through EPD Circular Letters No. 9 and No. 11 of May 20, 2022 and July 5, 2022, to seek prior permission before initiating transactions for import of Motor Cars (CKD), Mobile Phones (CKD) and machinery (falling under HS codes Chapter 84, 85 and certain codes with prefix 87).

    READ MORE: Dollar hits PKR 232 in midday interbank trading

    Keeping in view the concerns of the industry, SBP and the Federal Government, in consultation with the relevant stakeholders have devised a mechanism to accommodate import by different sectors/industries i.e. automobiles, mobile phones, home appliances, tractors, 2 and 3 wheelers, transformers and switchgear, auto parts manufacturers, telecom operators and exporters.

    READ MORE: Pakistan remittances from Saudi Arabia fall by 7.5% in two months

    The SBP has already approved more than 7,000 cases till date. “The delays in approval are caused sometimes because of submission of inaccurate or insufficient information to SBP,” it added.

    SBP is, however, striving hard to expedite the approval process as much as it can, according to the statement.

    READ MORE: State Bank signs deal to analyze property prices

  • Pakistan allows tax exemption on tomato, onion imports

    Pakistan allows tax exemption on tomato, onion imports

    ISLAMABAD: Pakistan on Wednesday granted exemption of income tax and sales tax on imports of tomato and onion during next four months.

    In this regard, the Federal Board issued notifications in this regard. The FBR issue SRO 1639(I)/2022 to allow withholding income tax exemption on import of tomato and onion imported till December 31, 2022.

    READ MORE: FBR collects Rs948 billion as tax revenue during 2MFY23

    Similarly, another SRO 1640(I)/2022 was issued to allow sales tax exemption on import of tomato and onion during September – December 2022.

    Previously, on August 30, 2022, in a meeting at the Ministry of National Food Security and Research (MNFSR), it was decided that the Ministry will issue import permits of onion and tomatoes within 24 hours.

    The Ministry has also proposed to FBR to waive-off taxes and levies on import of onion and tomatoes.

    It is expected that this will be made effective on immediate basis. These steps are taken to ensure a supply of the essential commodity in the market and to stabilize the prices.

    READ MORE: FBR announces tax exemptions for flood relief operation

    According to the details, the importers will be allowed to import onion and tomatoes.

    Ministry of National Food and Security has directed the Department of Plant Protection (DPP) to facilitate the import and ensure that there are no hindrances for importers.

    MNFSR has taken on-board all the stakeholders with an aim to ensure a supply of the essential commodities to the consumers.

    Furthermore, a contact group to facilitate imports is created, where importers will be able to share their problems. While a team at Ministry of National Food Security will monitor the situation and will take necessary action for redressal.

    READ MORE: KTBA demands suspending further tax due to practical issues

    Ministry of National Food Security and Research has taken the above decisions to ensure that onion and tomatoes are available in the market at reasonable rates to the consumers.

    Pakistan Embassies in Iran, Afghanistan, UAE and other countries have been requested to assist imports. Ministry of National Food Security and Research, with stakeholders, will continue to take necessary steps to ensure food security in the country in the times when crops have been heavily damaged because of recent floods and rains.

    READ MORE: FBR gets 3.38 million active taxpayers by August 28, 2022

  • FBR increases customs valuation for Afghan coal by 69%

    FBR increases customs valuation for Afghan coal by 69%

    KARACHI: Federal Board of Revenue (FBR) has increased the customs valuation of imported coal of Afghanistan origin by 69 per cent to $140 per metric ton.

    (more…)
  • Clearance of banned cars, phones allowed on 100% surcharge

    Clearance of banned cars, phones allowed on 100% surcharge

    ISLAMABAD: The government has allowed clearance of stuck up consignments of cars and mobile phones on payment of 100 per cent surcharge.

    The ministry of commerce on Friday issued an office memorandum regarding prohibition / complete quantitative restrictions on import of non-essential and luxury items.

    READ MORE: Pakistan lifts ban on import of cars, phones, luxury items

    The ministry said that pursuant to the decision of federal cabinet on August 19, 2022, the federal government had allow release of all those consignments/shipments which had been imported in violation of SRO 598(I)/2022 dated May 19, 2022 and landed at any Pakistani port, subject to payment of surcharge.

    The commerce ministry stated that to release those held up consignments, except Completely Built Unit (CBU) Auto, CBU phones and CBU home appliances, which landed after June 30, 2022 and on or before July 31, 2022 subject to payment of 25 per cent surcharge, and 35 per cent surcharge for those consignments which arrived after July 31, 2022.

    READ MORE: 15% surcharge imposed for clearance of banned items

    Similarly, to release held up consignments of CBU auto, CBU mobile phones and CBU home appliances, which landed after June 30, 2022 and on or before July 31, 2022 subject to payment of 100 per cent surcharge.

    The ministry of commerce issued SRO 1562(I)/2022 for lifting the ban on luxury and non-essential items, including motor vehicles, mobile phones and home appliances.

    The government on May 19, 2022 through a circular No. 598 (I)/2022 imposed the complete ban on import of such items in the wake of serious balance of payment crisis and to prevent fall in rupee value.

    Despite the ban, the rupee fell to the historic low of Rs239.94 against the dollar on July 28, 2022.

    It is worth mentioning that the foreign exchange reserves were drastically decreased despite imposition of ban on imported luxury items.

  • Pakistan lifts ban on import of cars, phones, luxury items

    Pakistan lifts ban on import of cars, phones, luxury items

    ISLAMABAD: Pakistan on Friday lifted ban on all import of luxury and non-essential items amid serious foreign exchange crisis.

    The ministry of commerce issued SRO 1562(I)/2022 for lifting the ban on luxury and non-essential items, including motor vehicles, mobile phones and home appliances.

    The government on May 19, 2022 through a circular No. 598 (I)/2022 imposed the complete ban on import of such items in the wake of serious balance of payment crisis and to prevent fall in rupee value.

    Despite the ban, the rupee fell to the historic low of Rs239.94 against the dollar on July 28, 2022.

    It is worth mentioning that the foreign exchange reserves were drastically decreased despite imposition of ban on imported luxury items.

    READ MORE: Pakistan decides to lift ban on imported goods

    Pakistan’s foreign exchange reserves have increased by $52 million by week ended August 12, 2022. The foreign exchange reserves of the country have recorded at $13.613 billion by week ended August 12, 2022 as compared with $13.561 billion a week ago i.e. August 05, 2022.

    The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $13.615 billion.

    The official foreign exchange reserves of the State Bank witnessed an increase of $67 million to $7.897 billion by week ended August 12, 2022 as compared with $7.83 billion a week ago.

    READ MORE: 15% surcharge imposed for clearance of banned items

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP declined by $12.249 billion.

    The country has taken the decision in order to fulfil the condition of International Monetary Fund (IMF) to get loans.

    Addressing a press conference a day earlier alongside members of the government’s economic team, Miftah Ismail said that the import ban on non-luxury items was placed in line with the IMF’s demands.

    Miftah said that after much back-and-forth, the IMF has finally announced that its board meeting will take place on August 29 — for considering Pakistan’s request for the release of the $1.17 billion tranche.

    The finance minister noted that the government has also fulfilled all the pre-requisites of the lender, while the funding gap of $4 billion has also been met — after friendly countries agreed to help Pakistan financially.

    He said that after the import ban, it became easier for the government to import necessary commodities, which were essential for the masses. “When we have limited dollars and we have to feed a huge population, our priority automatically becomes [the nation]. We had to choose between importing cars and wheat — that’s why we imposed a ban.”

    READ MORE: Pakistan allows release of banned items stuck up at ports

    The finance minister said the government was scrapping the import ban as it was an international requirement, but noted that the regulatory duty that will be imposed on the non-essential imported items will be three times higher than the current levels.

  • 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

  • Pakistan decides to lift ban on imported goods

    Pakistan decides to lift ban on imported goods

    ISLAMABAD: Pakistan on Thursday decided to lift the ban imposed on imported goods except for Completely Built Unit (CBU) of motor vehicles, mobile phones and home appliances.

    A review meeting was held to review the ban after two months owing to serious concerns raised by major trading partners on the imposition of ban and considering the fact that the ban has impacted supply chains and domestic retail industry.

    READ MORE: 15% surcharge imposed for clearance of banned items

    In the light of fact that imports substantially reduced due to consistent efforts of the government, the Economic Coordination Committee of the Cabinet (ECC) decided to lift the ban on imported goods except for Auto CBU, Mobile CBU and Home Appliances CBU.

    The committee also decided that all held up consignments (except items which still remain in banned category) which arrived at the ports after July 01, 2022 may be cleared subject to payment of 25 per cent surcharge.

    Ministry of Commerce submitted a summary on prohibition/complete quantitative restrictions on import of non-essential and luxury items.

    It was submitted that in order to curtail the rising current account deficit (CAD), ban on the import of about 33 classes/categories of goods was imposed with the approval of the Cabinet.

    READ MORE: Pakistan allows release of banned items stuck up at ports

    Due to the decision, the overall imports of the banned items have shrunk by over 69 per cent i.e. from $ 399.4 million to $ 123.9 million.

    Recently, the ministry of commerce had imposed surcharge up to 15 per cent for clearance of consignments stuck up at ports and were banned for saving foreign exchange.

    The ministry of commerce issued an office memorandum dated July 22, 2022 pursuance to the federal cabinet decision to release the consignments of prohibited items.

    The government through SRO 598(I)/2022 dated May 19, 2022 imposed a complete ban on the import of luxury and non-essential items.

    However, a large number of containers were stuck up at ports that were arrived after the imposition of ban.

    READ MORE: KCCI demands release of stuck up containers

    The Federal Cabinet on July 15, 2022 allowed the release of all those consignments/shipment which had been imported in violation of SRO 598(I)/2022 dated May 19, 2022 and were pending customs clearance.

    However, this clearance was subject to condition that consignments had landed at any port including sea, air or dry port of the country on or before June 30, 2022 subject to payment of surcharge to be imposed on the cost and freight value of goods.

    According to the ministry of commerce, five per cent surcharge has been imposed on the shipment which had arrived within two weeks of issuance of the SRO 598(I)/2022.

    Further, 15 per cent surcharge has been imposed on shipment which had arrived after two weeks of issuance of SRO 598(I)/2022 till June 30, 2022.

    Due to the ban about one thousand containers piled up and resulted in choking the ports. The stakeholders requested the government to allow the release of those consignments as many of the consignments were shipped before May 19, 2022 but lander after the date.

    READ MORE: Committee recommends lifting import ban on luxury items

    Previously, the Economic Coordination Committee (ECC) of the Cabinet in its meeting held on Tuesday July 5, 2022 allowed one-time release of those consignments carrying banned items and reached on or before June 30, 2022.

    Ministry of Commerce submitted a summary to seek permission for one time release of those consignments of items banned on May 19, 2022 which have reached Pakistan or would reach or their payments.

    In order to resolve the hardship cases, the ECC granted one-time special permission for release of consignments stuck at the ports due to contravention framed under SRO 598(I)/2022 dated May 19, 2022, only for those consignments which have landed at ports or airports in Pakistan on or before June 30, 2022.