SBP withdraws facility for authorized dealers to make advance payments against Imports for 100% value of goods up to $10,000

According to a circular on its website, SBP has withdrawn with immediate effect Para 30, Chapter 13 of Foreign Exchange Manual – 2018 in terms of which Authorized Dealers were allowed to make import advance payments against irrevocable Letters of Credit (L/C) upto 100% of the value of the goods and upto US$10,000/- per invoice for the import of all eligible items without the requirement of L/C or Bank Guarantee from the supplier abroad.

However, in case, Authorized Dealers deem that a request on the subject merits consideration, they may approach State Bank of Pakistan along with appropriate recommendations on a case to case basis.

SBP advised Authorized Dealers to bring the above instructions to the notice of all their constituents and ensure meticulous compliance.

All other instructions on the subject shall remain unchanged.