KARACHI: The State Bank of Pakistan (SBP) on Friday reduced cash margin requirements on deferred payments.
According to the details, the cash margin will now be 25% for payments from 91 to 180 days & 0% for payments beyond 180 days instead of the previous requirement of 100%.
The cash margin requirements are applicable to the PKR equivalent amount of the import transaction whereas cash margins deposited by importers on all items subject to CMR would be non-remunerative.
This change in the cash margin requirement, however, is applicable to all new import transactions initiated by the banks after the issuance of this circular.
In the case of already initiated import transactions, the instructions may only be applied if the amendments, in terms of payments are made.
The SBP further states that all other instructions on margin restriction of import of items remain unchanged.