SME IMPORTERS IN TERRIBLE TURMOIL…UNISAME

SBP URGED TO INTRODUCE DOLLAR VOUCHERS TO FACILITATE IMPORTS

The Union of Small and Medium Enterprises (UNISAME) referring to a primary meeting with Mukesh Kumar provincial chief SMEDA on 7th June 2023 which highlighted the predicament being faced by SME importers has now in pursuance urged State Bank of Pakistan (SBP) to urgently consider issuance of dollar vouchers to fund imports.
President UNISAME Zulfikar Thaver said the big importers are somehow managing as they have their resources both within and outside Pakistan but the SME importers are facing difficulties as the banks are not issuing Form I for imports by SME units who are handicapped and unable to clear their consignments nor place orders for imports of essential raw material as SBP is unable to provide dollars to commercial banks.
It is pertinent to note that the inventory is getting over and work will come to a standstill if further imports are not facilitated lamented the Union chief.
Unisame convener Trade facilitation committee Abdul Rauf Abdul Aziz said there is decline in remittances through proper channel and the reason is the attractive rate in the grey market resulting in decline in foreign currency reserves.
He said since SBP is unable to supply dollars for much needed imports due to low foreign currency reserves which is promoting grey market and major revenue loss in import duties, it is suggested that all the beneficiaries of home remittances from abroad may be issued a dollar voucher which could be sold through authorised dealers in the market to importers at market driven rates.
Shoaib Rauf member of UNISAME Council said the beneficiaries will get better rates and it will discourage hawalas which are undocumented, illegal and risky as well.
He said importers will be facilitated as they will not have to go to the hawala brokers and will be able to get attractive rates through proper legal channel under a dignified well defined system.
He added that SBP will not be burdened with arranging for dollars for imports as importers will be able to buy their requirements of dollars for imports.
Shaukat Ali convener Banking Committee said reduced imports means loss of revenue for government and this system of issuing dollar voucher will provide much needed dollars for imports and enable imports of raw material, packing material, parts, essential food items like tea, edible oil and condiments.
Hussain Ali convener logistics said dollars are needed to pay freight and this is causing delay in shipments , he appealed to the policy makers to prepare a mechanism for the dollar voucher system and implement it as fast as possible and facilitate imports without which the exports and the entire supply chain is affected.
The UNISAME Council members have urged the SBP director exchange control to urgently convene a meeting of UNISAME trade facilitation committee to understand the dollar voucher suggestion to save the economy from collapse and especially the SME units from closure.

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