Threshold of letter of credit payment increased to $100,000

Threshold of letter of credit payment increased to $100,000

ISLAMABAD: The government has increased payment threshold of letter of credits from present $50,000 to $100,000, Finance Minister Ishaq Dar said on Monday.

Briefing media here on Monday, Minister for Finance Senator Ishaq Dar announced the government’s decision to increase the threshold of letters of credits (LCs) payments from $50,000 to $100,000.

With respect to pending cases of LCs, Ishaq Dar said that last month there were about 8,000 pending payments of LCs, out of which 4,400 cases of up to $50,000 had already been cleared while now after the government’s decision of increasing the threshold up to $100,000, 1,365 more cases would be cleared.

“I met with the Governor Sate Bank of Pakistan (SBP) in Karachi on Sunday, and with the consent of SBP, the government has approved increase of the threshold up to $100,000”, he added.

He said the decision would be implemented from November 1, 2022.

The government has also decided to keep the prices of petroleum products unchanged for first half of November 2022 besides extending the last date for filing of tax returns.

“The government has decided to keep the prices of Petrol, High Speed Diesel, Light Diesel, and Kerosene Oil unchanged for for next 15 days”, Ishaq Dar said.

Further the minister said that today [October 31] was the last date for filing income tax returns, however on the request of representations of tax bar association and the business community, the government has decided to extend the date for one month up to November 30.