The State Bank of Pakistan has significantly reduced cash margin requirements on deferred payments on the imports of commodities from different countries. The cash margin will be 25 percent for payments from 91 to 180 days and zero percent on payments beyond 180 days instead of the previous requirement of 100 percent.
Cash margin requirements will be based on the PKR equivalent amount of the import transaction, subject to a tiered approach as outlined in the circular.
In April, SBP imposed 100 percent Cash Margin Requirements (CMR) on the import of 177 items with immediate effect. The cash margins deposited by importers on all items subject to CMR would be non-remunerative, a circular issued by the SBP said.
The list includes various items that fall under the category of luxury or non-essential goods. It added electronic items, construction, and furniture, food items, mobile phones, routers, memory cards, networking equipment garments, etc.