KARACHI: State Bank of Pakistan (SBP) has withdrawn all cash margin requirements on imports to benefit importers, according to a report on Sunday.
The central bank had previously imposed requirements under six circulars from 2017 to 2022 to fulfil another condition of the International Monetary Fund (IMF) to reach a staff-level agreement.
In a Banking Policy and Regulations Department circular dated March 24, the SBP said it was withdrawing the “existing Cash Margin Requirement on import of items with effect from March 31, 2023”.
The announcement comes as the central bank’s foreign exchange reserves increased by $280 million to $4.6 billion during the week ending on March 17 on the back of inflows from China.
Pakistan is required to reach a staff-level agreement with the global lender to secure a $1.2 billion tranche and unlock further inflows from other international creditors.