Karachi: On the demand of the IMF, the State Bank withdrew the condition of cash margin imposed on hundreds of imported items.
According to the circular issued by the State Bank, from March 31, the 100% margin on more than 500 imported items will not have to be deposited. All the circulars issued during 2017 to 2022 for implementation of cash margin were declared invalid.
State Bank has issued BPRD circular letter 6 to the banks to implement the new orders.
The IMF had called for a review of the government’s strict import policy. The margin requirement was imposed to discourage the import of luxury goods. According to experts, removing the cash margin requirement will increase imports and dollar demand and increase pressure on foreign exchange.
It should be noted that depositing an amount equal to the value of the imported goods in the bank while opening the LC is called cash margin.
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