KARACHI: Despite the State Bank of Pakistan’s (SBP) directives about import facilitation, the banks remain hesitant in opening letters of credit (LCs) for the import of necessities, posing threat to the food supply. Due to the banks’ reluctance to guarantee foreign exchange payments, thousands of shipping containers — including perishable, and non-perishable foodstuffs and medical supplies — are stuck at the Karachi Port after offloading. The banks show reluctance in opening letters of credit for the import of necessities like edible oil and pulses. This could also escalate price pressures and create a shortage of medications. Last month, the SBP lifted import restrictions that went into force on January 2. “In view of the orders issued last month, the SBP has given banks the power to facilitate imports. Thus, banks are not restricted from opening LCs for the importation of essentials such as food and medicine.
