Banks demand high dollar rate for releasing import documents

Businessmen highlight challenges in meeting with Punjab governor

LAHORE:

A delegation of the Lahore Chamber of Commerce and Industry (LCCI) executive committee on Thursday called on Punjab Governor Muhammad Balighur Rehman and apprised him of the issues being faced by the business community.

The delegation, led by LCCI President Mian Nauman Kabir, exchanged views with the governor on the country’s economic situation and difficulties confronting businessmen.

Punjab governor, while agreeing that political stability was vital for the country’s economic stability, appreciated the role of business community in reshaping the economy.

“Business community is the backbone of country’s economy as it provides business opportunities to millions of people,” remarked the governor.

Rehman promised that he would extend full support to the businessmen and assured them of taking up their issues with the relevant officials of both federal and provincial governments.

Earlier, Kabir apprised the governor that commercial banks were exploiting the business community by demanding Rs10 to Rs15 above the inter-bank dollar rate for releasing import shipment documents and asked him to take up the matter with the State Bank of Pakistan (SBP).

He also cited the SBP’s new circular dated July 5, 2022 that called for taking prior approval for the import of machinery as banks would release import shipment documents only after receiving the nod.

“The process takes 10 to 15 days, which will result in demurrage charges on late release of shipments.”

Furthermore, he demanded the setting up of Special Economic Zones (SEZs) in Lahore as the existing zones had no space and the cost of land was also unaffordable.

The LCCI leader highlighted the issue of fixed tax regime for small retailers, as the tax would be collected with electricity bills, and stressed the need for clear policy guidelines on the Point of Sale (POS) system for tier-1 retailers.

He insisted that the federal minister for finance should visit LCCI to interact with the business community regarding the prevailing economic issues.

Kabir proposed equal water tariff collection by Wasa across Punjab and requested the governor to take up the matter with the relevant officials of the provincial government.

He informed the governor about the high conversion fee (20% of DC value) for land use charged by the Land Development Authority (LDA) for the existing units. “This should be abolished and the governor should play a lead role in resolving this issue.”

Published in The Express Tribune, July 29^th, 2022.

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