Senate body expresses concern over LCs issue

Says non-clearance of LCs is causing forced closure of industrial units, unemployment

ISLAMABAD:

The Senate Standing Committee on Commerce has expressed concern over the problems being faced by importers due to the non-opening of Letter of Credits (LCs).

Deputy Chairman Senate Mirza Muhammad Afridi said in the meeting on Wednesday that the business community, especially the textile industry, is suffering due to the non-clearance of LCs, causing forced closure of industrial units and unemployment.

The commerce secretary informed the meeting that initiatives have been taken to start business-to-business (B2B) barter trade with Iran. “No country has banned B2B barter trade yet, and dollars will not be needed for that trade, but the State Bank must specify which items cannot be traded in barter,” he said.

Senator Zeeshan Khanzada, who was chairing the meeting, expressed concern over the non-participation of the minister of commerce. Noting his absence, Senator Dinesh Kumar also said that during the previous government, our same friends used to say that PTI ministers do not come to the committee, but now, when they are in power, the minister does not bother to attend.

The committee also took up the matter of the non-clearance of LCs, with Senator Fida Muhammad suggesting that it would have been better if the officials of the State Bank of Pakistan (SBP) had given a briefing.

Published in The Express Tribune, January 19^th, 2023.

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