Karachi December 31 2022: State Bank of Pakistan decided to extend the timeline for maintaining cash margin requirements on the import of 177 items, from December 31, 2022 to March 31, 2023, according to the issued statement.
On April 07, 2022 State Bank of Pakistan decided to obtain 100 percent cash margin on the import of 177 items as listed in the enclosed Annexure-A. The cash margins on these specific items is in place till December 31, 2022.
However, on August 05, 2022 the central bank relax the 100 percent cash margin requirements where the credit terms of import are more than 90 days; accordingly, the banks shall obtain cash margins as per the revised percentages given in the below table:
|Term of Payment from Import||Applicable Instructions for Cash Margin Requirement (CMR)|
|91 to 180 Days||25%|
|181 Days and above||0%|
The cash margin requirements shall be applicable on the PKR equivalent amount of the import transaction and would be non-remunerative.
The above instructions shall be applicable on all new import transactions initiated by the bank after the issuance date of this circular letter. However, on already initiated import transactions, the instructions may only be applied if the amendments (in terms of payment) are made subsequent to the date of the issuance of instructions in accordance with above table.