The central bank issued a circular instructing the termination of import restrictions, marking a significant step towards meeting another key IMF requirement. The circular further stated that remittances will now be provided for all imports following the enforcement of this latest order.
KARACHI: (UrduPoint/Pakistan Point News-June 23rd, 2023) In a significant development, the State Bank of Pakistan (SBP) has announced the removal of all import restrictions as part of its efforts to fulfill a condition set by the International Monetary Fund (IMF), reliable sources reported on Friday.
The central bank issued a circular instructing the termination of import restrictions, marking a significant step towards meeting another key IMF requirement. The circular further stated that remittances will now be provided for all imports following the enforcement of this latest order.
To facilitate the process, the Federal government has granted permission to banks for the release of over 6,000 containers by providing necessary remittances. The SBP, in collaboration with authorized dealers, has ensured that remittances will be facilitated based on recommendations from relevant stakeholders, as mentioned in the circular.
This move comes amid ongoing challenges faced by Pakistan and the IMF in revitalizing the loan program. Conflicts have arisen between the IMF and the Ministry of Finance, particularly regarding the bridging of the external financing gap.
Efforts were made to secure funds through the Geneva Donor Conference, aimed at garnering support and contributions to meet Pakistan's financial needs. As part of this strategy, the IMF was assigned a target to secure $500 million by June through the conference.
However, progress in obtaining funds for the Ministry of Planning and Treasury has encountered obstacles, leading to a delay in the financing process. Reports from the Ministry of Finance indicate that only $150 million has been received so far through the Geneva Donor Conference, falling short of the expected amount.
This shortfall has raised concerns within the IMF, which expressed dissatisfaction over the limited financial support acquired through the conference.
Nevertheless, it is important to note that the funds received through the Geneva Donor Conference will be allocated to crucial recovery and rehabilitation projects in areas affected by floods. The aim is to address the needs of these communities and provide support for their restoration efforts.
The SBP's decision to remove import restrictions demonstrates the government's commitment to meeting IMF conditions and paving the way for enhanced trade and economic activities. It is anticipated that these measures will contribute to Pakistan's overall economic stability and growth.
