State Bank of Pakistan`s Advance Payment Against Imports (Explain in URDU) – SBP Advance Payment Circular

State Bank of Pakistan`s Advance Payment Against Imports – SBP Advance Payment Circular

The Presidents/Chief Executives of all
Authorized Dealers in Foreign Exchange

Dear Sirs/Madam,

Advance Payment against Imports

Attention of the Authorized Dealers is invited to Para 30, Chapter 13 of Foreign Exchange Manual – 2018 in terms of which Authorized Dealers are allowed to make import advance payments against irrevocable Letters of Credit (L/C) up to 100% of the value of the goods and up to US$10,000/- per invoice for the import of all eligible items without the requirement of L/C or Bank Guarantee from the supplier abroad.

2.         In this regard, it has been decided that the above facility, allowed to Authorized Dealers to make an advance payment, stands withdrawn with immediate effect. However, in case, Authorized Dealers deem that a request on the subject merits consideration, they may approach State Bank of Pakistan along with appropriate recommendations on a case to case basis.

3.         All other instructions on the subject shall remain unchanged. Authorized Dealers are advised to bring the above instructions to the notice of all their constituents and ensure meticulous compliance.