KARACHI, June 21: Federation of Pakistan Chambers of Commerce and Industry President Tanvir A. Sheikh has appreciated State Bank of Pakistan’s decision to withdraw LC margin requirement on import of raw material.

In a statement issued here on Saturday, the FPCCI chief said this timely decision would improve the liquidity of the industry, which would ultimately ensure the availability of raw material to local industry. The step would regenerate the production process and help in boosting the exports, he added.

In monetary policy statement, SBP Governor Dr Shamshad Akhtar had imposed 35 per cent LC margin requirement on the import of raw material.

The decision was taken by the SBP on the plea to control the rapid devaluation of the rupee. However, this step added working capital problem for the import-oriented industrial units.

A sudden decline in the opening of LCs for import of raw material and massive decline in the inventory of raw material was observed. It was felt that industrial units shall face forced closure because of the shortage of raw material, which would accelerate the unemployment and shortage of commodities in the country.

The SBP governor announced the withdrawal of LC margin requirement in a meeting with FPCCI delegation led by Tanvir A . Sheikh.—APP