SCCI against implementation of margin markup on imports

19 Jun '08

1 min read

The Sailkot Chamber of Commerce and Industry (SCCI) has vehemently disagreed to the decision of the State Bank of Pakistan to levy 35 percent margin of markup on opening of the L/Cs by the importers. In keeping with the larger interest of the entire business community, it has also urged the Government to abolish the same.

The implementation of 35 percent margin of markup was tremendously hampering the import sector inhibiting manufacturers from sourcing essential raw material from abroad.

As a result importers have been refraining from getting raw materials from outside the country and using domestic raw materials instead. This has created a shortage in Pakistan's local markets forcing prices to go higher.

Quite obviously, the cost of production would also see an unchecked rise making Pakistani goods unduly expensive and thereby shattering exports.

The SCCI also tried reflecting on the consequences of the levy by adding that the decision would adversely affect exports and would make it extremely difficult for Pakistani exporters to withstand stiff challenges being posed by Bangladesh, Sri Lanka, Vietnam and China due to their competitive pricing.

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