SBP Adds More Items to Import Watchlist

In order to check the outflows of foreign exchange, the State Bank of Pakistan (SBP) has further tightened its policy by adding more items to its import watchlist. According to the new directives, authorized dealers mostly banks are required to seek prior permission from the Foreign Exchange Operations Department (FEOD), of SBP for initiating the import transaction. The banking regulator has updated the list including various electrical machinery, equipment, nuclear reactors, boilers, machinery and mechanical appliances, motorcycle kits, and items that fall under codes 84 and 84 of the Foreign Exchange Manual. Previously, the banking regulator also added CKDs of automobile and mobile phone assembly sectors. Strong reaction emerged from the stakeholders of relevant sectors who term this restriction as detrimental to their business growth. According to SBP, the addition of various sectors in the approval of import lists does not mean banning them completely with immediate effect but it aims at analyzing and examining the import of equipment and commodities in the critical situation. These sectors will undergo a process for assessment which can take a brief time for the importers who should cooperate with the banking regulator in the prevailing economic situation. Many sectors are allowed to import their required items after the due process.