Ban on imported goods including vehicle parts lifted

Karachi: The federal government has lifted the ban on the import of almost all types of goods.

Between 2017 and 2022, restrictions were imposed on the import of 826 different types of goods, but now this ban has been lifted.

These goods include raw materials required for cement and steel, auto parts, various food and drink items, chocolate, bottled water, cigarette paper, electrical appliances and electrical appliances, as well as some machinery and their parts.

According to a State Bank of Pakistan (SBP) circular, the bank has removed the condition of up to 100 percent advance payment on imports of hundreds of goods.

It has been decided to withdraw the existing cash margin requirement/CMR (advance payment) on import of items from March 31, 2023, the central bank said in a circular on Friday.

A few months ago, the SBP had directed commercial banks to prioritize import financing for energy (petroleum products and LNG), pharmaceuticals and medical devices, raw materials and machinery for exporters and vehicles (including passenger cars), respectively.

Pak while talking to Express Tribune. Samiullah Tariq, head of research at Kuwait Investment Company (PKIC), said the government informed about imports including raw materials required by various industries as it was a condition of the International Monetary Fund (IMF).

Tahir Abbas, head of research at Arif Habib Limited, said that now importers do not need to pay any amount in advance, it doesn’t matter if they have to make the import payment in a day or a year.

He said the central bank had relaxed the 100 percent cash margin requirement in August 2022 and allowed traders to import goods on deposit of only 25 percent advance payment in case of import payment within 90-180 days. Those who had to import on credit of more than 180 days had to deposit zero margin, but those who had to make import payments for less than 90 days were still liable to pay 100 percent advance payment.” But now as per the latest circular of SBP on Friday all restrictions regarding Advance Import Payment (Cash Margin Requirement/CMR) have been removed.

Fahad Rauf, head of research at Ismail Iqbal Securities, said the removal of the prepayment requirement by importers will reduce the liquidity needs of importers. Restrictions on imports have been lifted after being limited to $78 million.

Pakistan has fully opened up imports after China, the world’s second-largest economy, refinanced $1.7 billion over the past month and added another $2 billion on Thursday.

It may be recalled that Pakistan’s foreign exchange reserves fell to a nine-year low about six weeks ago due to import payments and foreign debt repayments, which was equivalent to less than three weeks of import cover. The restrictions lifted are as follows.

Confectioneries, Ice Cream, Butter, Chocolate, Cheese, Fish, Yoghurt, Natural Honey, Fresh Dates, Fruits, Dry Fruits, Bark, Bulgur Wheat, Vegetables, Juice, Mineral Water, Smoking, Non-Alcoholic Beer, Perfume, Mac Up articles such as nail polish and lipstick, cigarette paper, raw materials for steel (cold rolled coil and hot rolled coil), cement, men’s and women’s winter and summer ready-made garments, footwear, ceramics, electronic and electrical items. , video games, wooden furniture, motorcycles, used and reconditioned, tires, tubes and their raw materials, bicycles, granite and other stones, sim cards and other items.