ISLAMABAD: Delay in approval for import of essential items for manufacturing different products is seriously affecting the productivity of many industries in Pakistan.
Despite lifting the import ban on HS (Harmonized System) codes 84 and 85 in which many industrial and daily use products are included, delay in processing the Import Letter of Credit (LC) is depriving the businessmen of handsome profits.
Slow documentation delays manufacturing making it difficult for the industries to meet the export or local orders. Some units have stopped production due to the lack of essential parts. The small scale (SMEs) and large scale (LSMs) manufacturers are suffering a lot due to this situation. The non-operational units have suspended the operations leading to unemployment, with labourers suffering the worst.
Discussing this situation in detail with WealthPK, media coordinator and public relations officer (PRO) for Rawalpindi Chamber of Commerce and Industry (RCCI) Zulfiqar Ahmad said, “This slowdown in the processing of Import LCs has made it worse for industrialists – at both small and large scale – to meet the expenses. The unavailability of manufacturing parts has made the situation worse. If the situation persists a little longer, it can deprive many people of sustainable living. ”
The key products falling under the HS codes 84 and 85 are mostly related to the IT products, home appliances, chilling units, power generators, telecom, steel, and automobile industries, etc.
“The cost of production has already increased manifold due to a lot of taxes and slow banking process is another irritant. The operational expenses are also increasing due to this situation. When the imports will be received after a hectic process, obviously the production cost will mount. In this case, who will be responsible to recoup the loss of manufacturers?”
“Already, a large part of manufacturing in Pakistan depends upon imported raw material, machine parts, etc. Both the trade and business communities are worried a lot. This situation must be properly addressed to keep the economic activities going,” Zulfiqar added.
He said although it was a serious situation, it could be covered by showing a little more devotion and efficiency on the banks end.
“To cope with this situation and prevent it from recurring, the State Bank must launch one-window operation for quick processing of such requirements. It is not only important for the business community, but also worth it for a smooth socio-economic cycle in the country,” he said.
-INP
