SBP allows 100% advance payment for imports

03:40 PM | 14 Jul, 2018
SBP allows 100% advance payment for imports
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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.

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“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regard, it has been decided that the above facility, allowed to authorized dealers to make advance payments, stands withdrawn with immediate effect.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.