Dollar crunch to force import suspension of eatables, drinks in Pakistan

• Grocers association says all banks have refused to provide dollars. 
• No shipment would be cleared that was dispatched after June 25.
• Importers responsible for clearance of goods that have reached.

KARACHI: Owing to the non-availability of dollars, commercial importers have announced to stop the import of all eatables and drinks from June 25, The News reported Monday.

According to a statement issued by Karachi Wholesale Grocers Association Secretary Farhat Siddique, all banks have refused to provide them with dollars. 

After a thorough discussion, the association decided that importers should inform their indenters that no shipment should be dispatched after June 25. 

The importers are only responsible for the clearance of goods that have reached the port or are on the way. No shipment would be cleared that was dispatched after June 25. 

The association lamented that due to lack of foreign currency, thousands of containers are stuck at the port and they are paying fines and other charges on them.

The statement said the State Bank of Pakistan (SBP) is not providing the much-needed foreign exchange and its policies are extremely harmful to the country’s economy.

Left with barely enough foreign exchange reserves to cover one month's imports, the coalition government is desperately trying to manage a balance of payments crisis and bring inflation under control after it hit a record of nearly 38% last month.

The dollar crunch, restrictions on imports, and delay in opening letters of credit have severely affected several sectors of the country as none of them met the growth targets set for the fiscal year 2022-23.