Shipments worth $300 million stranded at ports due lack of clearance of LCs from SBP
The State Bank of Pakistan (SBP) has cleared 30,000 pending cases of letters of credit (LCs) and others will be cleared after consultation with the Ministry of Commerce.
SBP Governor Jameel Ahmed told the National Assembly’s Standing Committee on Finance that all confirmed LCs have been cleared, while all LCs up to October have been resolved by the central bank.
The committee chairman Qaiser Ahmed Sheikh and members shared complaints about the non-clearance of LCs and urged them to address the problems of the traders. The governor acknowledged the issue but at the same time said the regulator was doing everything in its capacity to help resolve all issues.
“I agree that businesses are facing numerous challenges, but until inflows improve, a certain level of stern management is needed. With time, all problems will be resolved in consultation with the business community and the Ministry of Commerce,” the governor stated.
The governor added that currently shipments worth $300 million are stranded at the ports because of LCs-related issues. He said that various proposals are being considered to address the reopening of pending LCs and that things will improve soon.