FPCCI urges SBP department to quickly clear import payments – Business & Finance

KARACHI: FPCCI Chairman Irfan Iqbal Sheikh has expressed concern over continued payment, clearance and demurrage issues faced by importers and industrialists on import shipments under Chapters 84 and 85 tariff, despite assurances from the government that the implementation date of the restrictions have been extended until July 5, 2022.

He stressed that the Foreign Exchange Department of the State Bank (FEOD) should promptly settle all import payments to avoid further delay, demurrage and loss to importers; and only approve payments individually that fall after July 5, 2022 in accordance with their own circular.

The head of the FPCCI added that goods under the aforementioned chapters are still not cleared without penalties, resulting in billions in losses. On top of that, dollar outflows continued for payment of container rents, demurrage and terminal fees. Therefore, the ban could not be used to restrict the outflow of dollars.

Irfan Iqbal Sheikh explained that the restrictions on Chapters 84 and 85 have also severely affected the import of tractor parts and other agricultural machinery. Moreover, the agricultural sector is already suffering the devastating effects of torrential rains across the country.

He demanded that the government come forward and resolve the impending issues of Chapters 84 and 85 without wasting any more time; and also offer a support mechanism to vulnerable sectors to deal with the unbearable financial losses resulting from the without consultation and sudden restrictions announced by the government a few months ago.

Copyright Business Recorder, 2022

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