KARACHI: The State Bank of Pakistan (SBP) on Saturday allowed 100 percent advance payment against letter of credit (LC) of all eligible imported goods.
In a circular issued by the central bank, the advance payment facility of up to $10,000 against import invoice without the requirement of the letter of credit or bank guarantee from the supplier abroad has been permitted.
“In this regard, it has been decided that the above facility, allowed to authorized dealers to make advance payments, stands withdrawn with immediate effect. 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,” reads the circular.
“All other instructions on the subject shall remain unchanged,” it added.
