Business

Commercial banks refuse to issue letters of credit to edible oil importers

Published

1 year ago

Farwa

Edible oil importers, ghee manufacturers told their LoCs can’t be opened at interbank exchange rates.
Banks willing to do business if importers open letters at Rs250 per dollar.
PVMA chairman requests SBP to address issue immediately.

LAHORE: Commercial banks are refusing to issue letters of credit for edible oil imports despite the exclusion of the sector from the condition of prior permission from the central bank, The News reported Friday.

Edible oil importers and ghee manufacturers have been informed unofficially that their letters of credit cannot be opened at the interbank exchange rates. However, the commercial banks were very much willing to do business with these importers if they were willing to open credit letters at Rs250 and above the exchange rate against a dollar.

Pakistan Vanaspati Manufacturers Association (PVMA) Chairman Sheikh Abdul Razzaq in a letter to the State Bank of Pakistan (SBP) governor said that “the ‘Commercial Banks’ are conveying to the importers-cum-manufacturers of edible oil that with immediate effect the edible oil has been excluded from the list of ‘Essential Items’ and hence turning down the requests for opening of L/Cs/retirement of documents”.

He further mentioned that the un-hindered opening of letters of credit/retirement of documents was inevitable. It should be given priority as accorded by SBP earlier vide EPD circular letter no. 20 of 2022 dated December 27, 2022 to avoid any crisis in the country, which could lead to increase in prices of cooking oil/ghee and shortage due to non-availability of the raw material (edible oil).

Pakistan imports 90% of its edible oil demand to meet the national requirement of over 4.5 million metric tonnes per annum. The existing domestic stocks are sufficient to meet the demand for only three to four weeks. However, the interruption in opening letters of credit could disrupt the smooth supply line and result in market disruption.

PVMA chairman requested the SBP to address the issue immediately and set aside the likely panic in the market, which might translate into a price hike, hoarding or retarded imports resulting in shortages.

“The industry is experiencing a unique and unprecedented kind of challenge wherein despite of sufficient stocks discharged in custom bonded warehouses at Karachi, it is unable to lift them due to refusal by banks to retire the documents,” he said.

Razzaq urged the SBP to direct the ‘commercial banks’ to honour the edible oil importers requests for credit letters and further inform the general public through media campaigns.

Business

There are US$13,280.5 million in foreign exchange reserves in Pakistan.

Published

2 hours ago

Farwa

According to a representative for the central bank, as of April 19, 2024, the nation’s total liquid foreign reserves were valued at US$ 13,280.5 million. A loss of US$74 million left the State Bank of Pakistan’s foreign reserves at US$7,981.2 million.

Commercial banks have $5,299.3 million in reserves for Pakistan.

In the week that concluded on April 12, the State Bank of Pakistan’s (SBP) foreign exchange reserves increased by $14.4 million to $8.055 billion.

“In a weekly statement, SBP stated that it has repaid US$ 1 billion in principal and interest on Pakistan’s International Bond, which matures this week.”

But at $13.374 billion, the nation’s total reserves decreased by $68 million. In the same way, commercial banks’ reserves dropped to $5.319 billion, a reduction of $82 million.

Business

NIMA seminar to increase Pakistan’s ship recycling industry’s capacity

Published

2 hours ago

Farwa

According to a release, important players from a range of maritime industries attended the conference to discuss issues facing the shipping sector.

It further stated that the symposium cleared the path for the resurgence of a sustainable future in ship recycling.

Participants in the conference included representatives of the Gadani Ship Breaking Labour Union, PSBA, KS&EW, KPT, PMSA, GEMS, and the federal and Balochistani governments.

Furthermore, global perspectives and ideas were offered by international specialists such as Rabia Razzaque from UN-ILO and Professor Raphael Baumler from the World Maritime University.

The seminar emphasized Pakistan’s capacity to emerge as a pioneer in the field of environmentally friendly ship recycling.

In order to protect the environment and the safety of employees, the participants emphasized the importance of following international standards and regulations.

During his speech, Chief Guest Senator Nisar Ahmed Khoro emphasized the importance of the maritime industry’s resurgence and the crucial necessity for coordinated efforts from all parties involved.

A new age of economic prosperity, worker safety, and environmental responsibility for Pakistan’s maritime industry was called for as he urged the stakeholders to work together on a comprehensive SENSREC program.

Vice Admiral Ahmed Saeed (Retd), the president of NIMA, emphasized the significance of environmental stewardship and safety in ship recycling procedures.

Business

Inflows into the Roshan Digital Account surged to $7.660 billion on March 24.

Published

2 hours ago

Farwa

According to the data, remittance inflows for the month of March totaled US$ 182 million, whereas they were US$ 141 million in February and US$ 142 million in January 2024.

Millions of Non-Resident Pakistanis (NRPs), including those who own Non-Resident Pakistan Origin Cards (POCs), can now engage in banking, payment, and investing activities in Pakistan with the help of these accounts, which offer cutting-edge banking solutions.

According to a statement from the State Bank of Pakistan, the number of accounts registered under the program increased by 11,091 from 668,701 accounts in February 2024 to 679,792 accounts in March 2024.

As of March 2024, the central bank reported that foreign nationals of Pakistan have invested US $312 million in Naya Pakistan Certificates, US $528 million in Naya Pakistan Islamic Certificates, and US $31 million in Roshan Equity Investment.

It is important to note that former prime minister Imran Khan introduced the Roshan Digital Account initiative in September 2020 with the goal of giving Pakistanis living abroad access to digital banking services for the first time.