KARACHI, Aug 20: The State Bank has advised all banks to start opening letters of credit (LCs) on behalf of the private sector traders importing raw and refined sugar from India.
In a letter written to the banks on Saturday, the SBP’s Exchange Policy Department has informed them that the ministry of commerce has allowed the private sector to import raw and refined sugar from India. The central bank has told the banks that they do not now require its prior permission for opening LCs for sugar imports from India.
Earlier, when the government had allowed the private sector to import raw and refined sugar from anywhere in the world, except Israel and India, the central bank had notified this decision to all the banks on July 25.
Since the ministry of commerce has allowed sugar imports also from India, the SBP has modified its earlier advice.
The government has permitted the private sector to import sugar to overcome the scarcity of the commodity in the country and stabilize its prices.
