SBP orders ADs to seek permission from FEOD before initiating import transactions

May 20, 2022 (MLN): The State Bank of Pakistan (SBP), on Friday has ordered Authorized Dealer (ADs) to seek permission from Foreign Exchange Operations Department (FEOD) SBP-BSC before initiating transactions for import of goods.

The goods for which permission will be required include, Power generating machinery, other machinery, electrical machinery and apparatus, mobile phone (CKD), and motor cars (CKD).

As per the circular issued by SBP, the above condition will be effective immediately and shall be applicable for all import transactions initiated by Authorized Dealers through (i) issuance/ amendment of letter of credit; (ii) registration/ amendment of contract; (iii) making advance payment; (iv) authorizing transactions on open account or collections basis.

Moreover, it will not be applicable on import transactions initiated by the Authorized Dealers on or before the date of issuance of this circular letter.

As per SBP, the ADs may approach Director, FEOD, SBP-BSC, Head Office, Karachi, along with appropriate documents and its recommendation on a case-to-case basis

Authorized Dealers shall be required to suitably amend the importer’s bank profile in Pakistan Single Window to ensure that the aforementioned import transaction shall not be initiated on open account basis without prior permission from State Bank, the notice said.

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