Industries protest curbs on opening LCs

Held meeting with Senate Finance Committee

ISLAMABAD:

Restrictions on opening Letters of Credit (LC) to import raw materials essential for operations has put Pakistan’s leading producer of innovative home appliances in a crux with the company’s management urging the government to offer support.

Dawlance Chief Executive Officer, Umar Ahsan Khan held a meeting with a Senate Finance Committee on Wednesday to highlight the adverse economic impact of the current interruption in Pakistan’s import trade.

Both sides discussed critical issues as the shortage of foreign-currency reserves in Pakistan has driven the State Bank of Pakistan (SBP) to curtail the imports of many important commodities and goods, over the past many months. As a result, even large-scale industries are not allowed to open LCs to import raw material needed for production.

Chairman of the committee, Saleem Mandviwalla asked the SBP governor to look into resolving the issues being faced by the Turkish investor. The company pays approximately Rs15 billion annually in duties and taxes, and provides employment to over 4,500 Pakistanis.

Published in The Express Tribune, March 9^th, 2023.

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