The backlog of Letters of Credit issue is increasing problems for the importers with every passing day, causing them financial losses and also has sparked fears that the shipping companies of the world might suspend Pakistan operations.
Delays are causing detention charges, demurrage, shortages of raw materials for industrial production, closure of major industrial units, disruptions in the supplies of agricultural inputs, closure of plants due to unavailability of spare parts of the machinery and equipment, an unfulfillment of export orders, loss of revenue due to dwindling production and layoffs.
The Federation of Pakistan Chambers of Commerce and Industry and the State Bank of Pakistan (SBP) has announced a joint committee for clearing backlog of letters of credit (LCs).
The issue has created uncertainty in cash-stripped Pakistan.
The Senate Standing Committee on Commerce has also expressed concern over the problems being faced by importers due to the non-opening of Letters of Credit (LCs).
Deputy Chairman Senate Mirza Muhammad Afridi said in the meeting on Wednesday that the business community, especially the textile industry, is suffering due to the non-clearance of LCs, causing forced closure of industrial units and unemployment.
Senator Zeeshan Khanzada, who was chairing the meeting, expressed concern over the non-participation of the minister of commerce. Noting his absence, Senator Dinesh Kumar also said that during the previous government, our same friends used to say that PTI ministers do not come to the committee, but now, when they are in power, the minister does not bother to attend.
The seriousness of the government is the need of hour because a backlog of letters of credit can create more problems for Pakistan if the shipping companies boycot the operations due to the non-clearance of containers. The government must seriously look into the matter and ensure timely clearance of the LCs,
