SBP lifts curbs on import of essential items

The State Bank of Pakistan has eased imports of several essential items required as raw material and some basic needs of the exporters. A circular issued by the SBP on Tuesday stated that the central bank had decided to withdraw its instructions with effect from Jan 2, 2023, paving the way for acceptance of requests for import transactions already submitted to the SBP. Earlier, under circulars issued in May and July this year, the authorised dealers (banks) were required to seek permission from the SBP’s Foreign Exchange Operations Department before initiating any import transaction. Though the main hurdle in the way of imports is the country’s poor foreign exchange that still persists, the State Bank came out to facilitate the economy heading fast to hit rock bottom. These restrictions were removed on Tuesday, but the central bank asked banks to prioritise items for imports under a list given by the SBP. Import of essential items such as food (wheat, edible oil, etc.), and pharmaceutical (raw material, life-saving/essential medicines), surgical instruments (stents, etc.) were allowed under the new circular. These sectors are under serious stress and shortage of medicines like life-saving drugs is common.