The State Bank of Pakistan‘s decision to remove cash margin limitations on imports of goods was praised by the business community on Saturday and was seen as a positive step.
“We welcome the SBP’s decision, as measures taken to minimize imports were affecting the industry that was facing a shortage of raw materials, machinery and other inputs leading to disturbing many sectors.”
The blockage of funds situation was also arising due to the condition of 100pc cash margin but now the situation would take a positive turn around,” Lahore Chamber of Commerce and Industry President Kashif Anwar said in a statement.
“The removal of cash margin will support the ease of doing business in Pakistan as a large number of companies were facing raw material shortages due to imposition of cash margin restriction. It is a wise decision,” he added.
More Easiness on Import Goods Cash Margins Must be Made
The head of the LCCI also believed that the government should do away with regulatory duties, additional customs duties, and customs duties on basic raw goods.
Together with this, the problems with outstanding refunds and numerous audits should be fixed in addition to lowering the withholding tax rate for businesses.
He claimed that unheard-of interest rates and high energy costs had driven up the cost of doing company to levels that are unsustainable.
“We have always insisted on increasing the tax base. We have suggested the government to immediately announce a declaration scheme so that undeclared foreign reserves can become part of our economy,” he added.
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