In a bid to provide relief to the business community, Finance Minister Ishaq Dar Sunday announced that the pending payments of letters of credit (LCs) worth $50,000 will be cleared this week.
Addressing a press conference, Dar revealed that the decision to provide relief has been taken after consultations with the State Bank of Pakistan (SBP) Governor Jameel Ahmed
The finance minister stated that the SBP chief will convey these orders to clear LCs as a “first step” towards growth next month before departing for Washington to meet with International Monetary Fund (IMF) officials.
Almost 4,400 requests for opening LCs, a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods, will be deducted after these decisions, according to the speaker, who revealed that there were a total of 7,952 cases still pending.
For certain imports, including as vehicles (CKD), telephones, and various types of machinery, the SBP previously required prior approval before opening LCs or registering contracts. However, these directives were given on May 20, not today.
