KARACHI: State Bank of Pakistan has eased 100 percent cash marginrequirement on the import of certain raw materials to support manufacturingand industrial sectors and further enhance their capacity to contributetowards the recovery of the economy in post COVID-19 era.
The cash margin condition was initially imposed in 2017 on 404 HS Codes andlater in 2018 on a further 131 items, with a view to contain the import ofmostly consumer goods and to allow room for the import of moregrowth-inducing items.
Considering the challenges posed by the COVID-19 to the manufacturingsector and other economic segments, and on the representations made byvarious businesses and associations, the SBP re-evaluated the cash marginrequirements and decided to remove this requirement on 106 items/HS Codes.
The removal of the cash margin requirements on these items will supportbusinesses’ cash flows and liquidity, by freeing up funds previously heldwith the banks under cash margin against imports, and route these fundstowards avenues of growth and development that will benefit the economy.
Read Top Stories
The SBP remains committed to facilitate industries and businesses incontributing to the growth and development of the country, and is ready totake any further actions required to support the overall manufacturing andindustrial activity.
