KARACHI: Amin Yousuf Balgamwala, Chairman PCDMA & former Director of Karachi Stock Exchange has appealed Reza Baqir, Governor State Bank of Pakistan to give relaxation to importers for the payment of their documents of imports against letter of credits and collection in their banks.
Amin Yousuf Balgamwala while appreciating the initiative taken by the State Bank of the refinance scheme for businesses nationwide to assist them in the payment of their wages & salaries to their workers and employees. He said that due to the extra ordinary situation COVID-19 pandemic country wide, he said that PCDMA members are facing liquidity crunch due to shutdown of economic activities.
“We are importers of Chemical and Dyes which supply raw material to textile industry for export purposes but at the present scenario due to coronavirus outbreak you might be well aware there is no business due to lockdown which has made the situation of liquidity and cash availability within businesses worst, therefore if the State Bank allocates any funds for the importers and their payments against their obligations, it would save them from much losses otherwise they will face huge losses in terms of markups, interests and profits being charged by the banks”, he requested.
Balgamwala suggested that those entities who have established letter of credits or whose documents have outstanding payments after 10th of March 2020 until 15th April 2020 should be given this facility, i.e. the banks would pay for their documents and the commodity would be in the banks custody for the period of 6 months interest free and as a security 15-20% of total amount of the document has to be given by the account holder/LC opener entity.
“Hence, as a relief measure, importers should be given relaxation for the payment of their documents of imports against letter of credits and collection in their banks”, Balgamwala added.