The State Bank of Pakistan (SBP – central bank) has granted permission to financial institutions that are authorised dealers in foreign exchange to proceed with import advance payments, without requiring prior approval from the central bank, provided they are backed by irrevocable letters of credit (L/Cs) or invoices.

According to an SBP notification, authorised dealers must only make advance payments against imported goods subject to appropriate due diligence and compliance with the central bank’s trade-based money laundering (TBML) framework.

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