Karachi: President of Korangi Association of Trade Industry (KATI) Faraz-ur-Rehman welcomed the decision by the government and State Bank to lift the ban on LCs. KATI termed it as optimistic for the economy.
President KATI said that the government had accepted the long-standing demand of the business community, and the ban would have created a shortage of essential raw materials.
Moreover, it would have increased fears amongst the export sector
Rehman expressed that the decision to lift the ban has ended the ongoing crisis in the country and soon the raw materials stuck at the port will be cleared, which will lead to increase exports in Pakistan.
The implementation of the No Remittance Involved clause in LCs will not affect the foreign exchange reserves, however, if the government relaxes the condition of prior permission from the State Bank, the difficulties of the industry will be further reduced, which will help in increasing the inflow of foreign exchange in the country, he added.
President KATI said that the government’s decision has saved millions of jobs. It is hoped that the industry will soon stand on its feet and become economically stable. Faraz-ur-Rehman further said that now the rumors of the default of the country will end. President KATI further said that the government should formulate an economic policy in consultation with industrialists and other stakeholders to ensure the use of valuable foreign exchange in development works.
