KARACHI: The State Bank of Pakistan (SBP) on Wednesday allowed advance payments on imports of essential items which were restricted by the caretaker government.

The SBP on Wednesday said that it has been decided to allow advance payments on imports of items worth or up to $10,000 or equivalent per invoice and also on open account imports basis up to the said limit for items like life saving drugs.

Advance payments were allowed for import of lifesaving, essential medicines and devices subject to submission of a certificate to an authorised dealer issued by respective provincial health department confirming that the medicines, devices and instruments to be imported fall under life saving and essential category.

Advance payments against the aircraft related spare parts and components were also allowed.

Additionally, advance payments of up to $10,000 will also be allowed for lab equipments and instruments imported by educational institutions for their own use.

The SBP also allowed advance payments against imports of newspapers, magazines, periodicals, books etc.

“All other terms, conditions, and instructions in the matter shall remain unchanged,” said the SBP.

The central bank advised authorised dealers to ensure strict compliance of the above instructions.

Caretaker government took a number of steps to reduce the huge trade deficit as well as the current account deficit to protect the fast depleting foreign exchange reserves of the country.

Published in Dawn, August 30th, 2018