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KARACHI: Pakistan Yarn Merchants Association (PYMA) on Thursday said containers of polyester yarn were stuck at ports on non-issuance of letters of credit (LCs) by banks.
In a statement, the association demanded immediate release of the detained containers, saying the importers were having to pay heavy demurrage and detention charges.
Banks were not opening LCs despite instructions from the State Bank of Pakistan, PYMA senior vice chairman Sohail Nisar said.
Nisar added that a large number of containers loaded with imported polyester yarn were stuck at the country’s ports, which had led to a disruption in supply of raw materials to the textile industry.
“The State Bank had issued a circular on December 27, 2022, in which the central bank had removed the condition of taking prior approval before starting any import transaction under Chapter 84 and 85 but LCs are not being opened by banks, due to which industries are facing raw material crisis,” he stated.
The PYMA official suggested that the containers that had reached the ports should be locked, and those that have not been shipped be stopped. “If the government does not have dollars, it should issue a circular to all banks that after January 15, if yarn or any other commodity was imported, they will not get EIF [electronic import form].”
Nisar asked the government to waive demurrage and detention charges on the stuck containers and issue orders to clear them at the earliest.
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