KARACHI (April 02 2003) : The State Bank of Pakistan has allowed the authorised dealers to approve requests of advance remittances up to the extent of 50 percent of the estimated cost and freight (C&F) value of total goods to be imported.
Earlier, in special cases, with prior permission of the central bank, advance remittance was allowed up to 33 percent of the estimated C&F value of total quantity of the goods to be imported.
The authorised dealers have been instructed to report this transaction post-fact, on From 'I', duly signed by the importer, to the SBP with monthly return.
The central bank took this step on Tuesday to further liberalise the facility of advance remittances, which is a growing requirement of importers especially in the wake of rising import of machinery into the country.
“Authorised Dealers may consider applications for advance remittance against imports up to the extent of 50 percent of the estimated C&F value of the total quantity of the goods to be imported,” said the circular issued by the SBP on Tuesday.
“Applications for such advance remittance should be made to Authorised Dealers on Form 'I' and should be accompanied by the original contract entered into between the importer and the foreign manufacturer or supplier.
The application should also be supported by an undertaking in the prescribed form duly signed by the importer,” said the circular.