DACCA: The State Bank of Pakistan has adopted some selective credit control measures including restriction on credit for unproductive purposes to arrest hoarding and the rising prices, a spokesman of the Bank said here yesterday (Jan 20). The spokesman talking informally to newsmen said that the selective credit control measures adopted by the Bank had a favourable impact on the credit situation in East Pakistan.

The spokesman said that the State Bank had also imposed margin restriction against imported manufactured goods to “stop speculative stick building.” He said that such margin for West Pakistan was 80 per cent, and for East Pakistan it was 50 per cent. He said that the State Bank had also provided that the credit margin required for letter of credit for all imported goods should be 25 per cent for West Pakistan and 20 per cent for East Pakistan.

Replying to a question he said that industrial machinery imported in East Pakistan were exempt from this restriction. The spokesman said that the State Bank had instructed the commercial banks to meet in full the demand for working capital for the industries and the jute trade of East Pakistan. — Agency

Published in Dawn, January 22nd, 2021