As per the banking sector sources, Cash Margin on Import LCs is expected to be increased soon, as State Bank of Pakistan contemplate to curtail Rising Imports in the economy which is causing significant Current Account Deficit.
SBP recently amended Prudential Regulation for Consumer Financing, primarily targeting Luxury Automotive, as Import of Automobiles during July-August 2021 remained $495 million compared to $160m in the same period of last year.
Existing level of Cash Margin on LCs was eased Last year amid COVID19 pandemic situation.
Some analyst believe that SBP will impose 100 percent cash margin specially for Luxury goods in order to reduce imports.
The Federal Ministries of Finance and Commerce are also contemplating increase in Import Duties for various Luxury Goods., as Trade Deficit rises to unprecedented levels.
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