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Exporters play vital role in national economy: SBP governor

Exporters play vital role in national economy: SBP governor

KARACHI: The Governor of the State Bank of Pakistan (SBP), Reza Baqir, said on Tuesday that exporters play an important role in the national economy which primarily reduce the poverty level of any country, according to media.

Reza Baqir, while detailing the economic improvements during a press briefing, said that the financial institutions are working on strategies to open doors of Pakistan to the world.

“The first announcement is for ease of doing business and the second is for exporters. The central bank has given discount up to $10,000 in term of exports and services during its first phase. The financial authorities will provide more facilities into these sectors in future.”

“The exchange rate of Pakistani rupee was made market-based in May 2018. The stability of the national currency creates ease in running businesses.”

“In July 2018, the authorities have imposed a ban on advance payments. However, the relaxation to services and exports will benefit small and medium-sized businesses. Today, the situation of the forex market has stabilised.”

The governor said that the central bank supports exports by providing short-term and long-term loans to the exporters. The interest rate on the short-term loans is 3 per cent and for long-term loans is 5-6 per cent.

It is pertinent to mention here that the State Bank of Pakistan (SBP) had allowed the authorized dealers to effect advance payments up to US$10,000 per invoice on behalf of importers cum exporters for import of raw materials, accessories and spares on January 1.

Earlier, the SBP had restricted the advance payment facility in July 2018 which was previously allowed to importers through authorized dealers.

However, on the intervention of the chamber of commerce and industry, trade associations and the ministry of commerce it has been decided to relax this ban to the extent of an exporter who has to import accessories, raw material and spare parts for their exports. It is expected that this will improve the export environment.