July 25, 2023 (MLN): President Karachi Chamber of Commerce & Industry (KCCI) Mohammed Tariq Yousuf expressed deep concerns over the denial of LCs by banks to commercial and industrial importers of raw materials, said a press release issued.

Mohammed Tariq Yousuf said that this was affecting their businesses and causing losses.

He urged the Finance Minister Ishaq Dar and Governor State Bank Jameel Ahmed to take strict notice of this issue and ensure smooth issuance of LCs as per the government’s commitments and assurances given from time to time.

He said that this was essential for the economic growth and development of the country.

President KCCI pointed out that although some improvement was witnessed but it seems that the situation was once again heading towards the same disaster as not a single LC was being issued by the banks which was creating severe crises for the business community.

“The government must promptly intervene in this particular issue to save the economy as well as business, particularly the exports from further plunging into further crises”, he added.

Tariq Yousuf particularly noted that Finance Minister had instructed commercial banks to facilitate export-oriented sectors in opening LCs for raw material, machinery, spare parts and other items. He said that this was necessary to restore the industry’s supply line and boost exports.

However, he lamented that the banks were not following these orders and were denying LCs to the importers.

He said that it seemed that the banks had been given freehand and the SBP was not taking any action against them.

This was unacceptable as the number of LC-related complaints was increasing day by day and no bank was ready to entertain LC cases.

He stressed that the importers of essential items whether commercial or industrial should be treated at par because industrial importers cannot import everything by themselves as there were many things that are to be purchased from the market as the inventory or the consumption does not allow them to import everything on their own.

“Therefore, the import by commercial importers of raw materials for the industries, particularly the export-oriented industries, is critical so it should not be stopped at any cost.”

He reiterated that the banks' denial to issue LCs should be taken as a very urgent matter and strict directives have to be immediately issued with a view to save industrial production from further deterioration.

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Posted on: 2023-07-25T09:52:18+05:00