Dollar Crunch: Import Suspension
KARACHI: Due to the unavailability of US dollars, commercial importers have announced their decision to halt the import of all food items and beverages starting from June 25, as reported by The News on Monday.
In a statement issued by Farhat Siddique, Secretary of the Karachi Wholesale Grocers Association, it was revealed that all banks have declined to provide them with US dollars.
Following extensive deliberations, the association has concluded that importers should notify their indenters that no shipments should be dispatched after June 25.
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The responsibility of importers solely lies in the clearance of goods that have either reached the port or are currently in transit. No shipments dispatched after June 25 will be granted clearance, as emphasized by the association.
The association expressed deep concern over the accumulation of thousands of containers at the port due to a lack of foreign currency. Importers are facing penalties and additional charges associated with these stalled containers.
In their statement, the association highlighted the State Bank of Pakistan’s (SBP) failure to provide essential foreign exchange and criticized the detrimental impact of its policies on the country’s economy.
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With foreign exchange reserves barely sufficient to cover one month’s worth of imports, the coalition government is making desperate attempts to address a balance of payments crisis and curb the soaring inflation, which reached a record high of nearly 38% last month.
The scarcity of dollars, import restrictions, and delays in opening letters of credit have had a severe impact on various sectors within the country. None of these sectors have been able to meet the growth targets set for the fiscal year 2022-23.