May 11, 2006	Thursday	Rabi-us-Sani 12, 1427

KARACHI, May 10: The State Bank has laid down the procedure for the payment of freight subsidy on import of cement.

The Economic Coordination Committee of the cabinet last month allowed import of cement from all countries, including India, by rail, road and sea. A freight subsidy of Rs60 per 50kg bag of imported cement has also been allowed.

The incentive was allowed to bring down cement prices in the local market which proved a severe blow to the housing industry and hit middle income group consumers.

The SBP advised all the authorized dealers to process freight subsidy claims on imported cement. The central bank issued a circular on Wednesday for the implementation of the Cabinet decision. According the procedure, importers would lodge their claims along with the import documents to their bankers within 60 days from the date of clearance of consignment from the customs.

The dealers will examine, process, recommend and forward the claim within three working days of its receipt to the concerned field office, SBP — Banking Services Corporation — for payment.

The field office on the basis of authorized dealers’ certification will credit their accounts with the claimed amounts within three working days of receipt of claims for onward disbursement to the importer concerned immediately.