SBP abolishes cash margin requirement on imported items
KARACHI: The State Bank of Pakistan (SBP) on Friday abolished the dollar cash margin requirement on imports from March 31, ARY News reported.
Experts claimed that the government fulfilled another condition of the International Monetary Fund (IMF) by ending the dollar cash margin requirement on imports.
It is pertinent to mention here that the government imposed a cash margin requirement in August 2022 to limit imports of luxury and non-essential goods to deal with the country’s financial crisis.
The SBP has issued a notification to all financial institutions instructed to put an end to the dollar cash margin requirement on imports.
According to experts, a cash margin is a form of security to eliminate the risk of non-payment, adding that the cash margin imposed on imports has been withdrawn on IMF directives.