April 07, 2022 (MLN): In the wake of surging import invoice, raging dollar need and depleting foreign trade reserves, the Condition Lender of Pakistan (SBP) has decided to impose a 100 p.c cash margin on 177 imported solutions.
This firefighting measure will help discourage imports of these items and as a result assistance the equilibrium of payments.
Cash margins are the total of dollars an importer has to deposit with its bank for initiating an import transaction, this kind of as opening a letter of credit (LC), which could be up to the full value of the import. Hard cash margins basically raise the price tag of imports in conditions of the option expense of the amount deposited and thus discourage imports.
To remember, a 100 percent income margin necessity was in the beginning imposed, in 2017, on 404 things to discourage the import of largely non-critical and purchaser merchandise. The listing was more expanded in 2018. Nevertheless, in order to help organizations to soak up the shocks of the COVID19 pandemic, SBP furnished aid by removing CMR on 116 products.
Later on in September 2021, SBP experienced decided to modify its coverage by imposing Cash Margin Necessity on further 114 import products to moderate the advancement.
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Posted on: 2022-04-07T21:52:37+05:00
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