KARACHI (Daily Dunya) – State Bank of Pakistan (SBP) on Friday has imposed 100pc cash margin on various consumer items including motor bikes, mobile phones and cigarettes.
SBP has implemented 100pc cash margin in line with powers entrusted to it under Banking Companies Ordinance, 1962.
A circular issued by central bank narrated the State Bank expects that this regulatory measure would help accommodate incremental import of growth-inducing capital goods.
Figures available reveal hassle of federal government as trade deficit has swelled alarmingly in first seven months of ongoing fiscal year. Financial analysts believe Dar-led financial team would face tough time in crafting new budget if bullish momentum of trade deficit is not curbed.
Following products fall under umbrella of 100pc cash margin: motor bikes part (completely built units and completely knocked down), mobile phones, cigarettes, jewelry, beauty items, electronic items, household appliances and weapons.
The move is aimed at slashing trade deficit of dwindling economy as implementation of 100 cash margin will discourage imports of above mentioned products.
Stats show trade deficit has increased by 28.7pc to $17.42 billion in first seven months of FY 2016-17. Likewise, Pakistan’s exports in same period fell by 3.2pc to $11.70 billion whereas imports witnessed a decline of 13.7pc to $29.10 billion.
It may be noted that country’s import bill, when compared with same period of previous fiscal year, has soared by $3.50 billion dollar.