The Lahore Chamber of Commerce and Industry (LCCI) has applauded the State Bank of Pakistan’s (SBP) decision to remove the cash margin requirement (CMR) on goods imports. This move is expected to ease the difficulties faced by the industry due to the shortage of raw materials, machinery, and other inputs.
According to LCCI President Kashif Anwar, Senior Vice President Zafar Mahmood, and Vice President Adnan Khalid, the 100 percent cash margin requirement was causing a blockage of funds and hindering the ease of doing business in Pakistan. The removal of the cash margin requirement is expected to turn the situation around and support the growth of businesses.
The LCCI officials also called on the government to eliminate regulatory duty, customs duty, and additional customs duty on essential raw materials. In addition, they urged the government to resolve the issues of pending refunds and multiple audits, and to reduce the rate of withholding tax for businesses.
The SBP’s decision to remove the existing CMR on imports, which takes effect from March 31, 2023, is a welcome move for the industry. This decision is expected to promote economic growth and help businesses meet their raw material requirements without facing financial constraints.
In conclusion, the removal of the cash margin requirement by the SBP is a positive step towards facilitating businesses in Pakistan. It is hoped that the government will continue to take such measures to create a business-friendly environment and promote economic growth in the country.