Alarming signals: Private bank closes CAD, D/P, D/A services for businesspersons
private bank has closed CAD (cash against demand), D/L (demand against letter) and D/A (document against acceptance) services for the businesspersons in the latest move.
A private bank has closed CAD (cash against demand), D/L (demand against letter) and D/A (document against acceptance) services for the businesspersons in the latest move, raising alarming signals regarding the intensifying economic crisis.
Although, finance minister Ishaq Dar ruled out the possibility of a rise in Pakistan’s default risks and shortage of fuel reserves. He had also termed the media reports misleading as the country has a below 10% chance of facing a default.
In the latest development, a private bank closed the crucial services for imports for its business clients following the ‘instructions received from its head office’. However, the letter of credit (LC) was not yet closed for the private bank’s clients.
A businessperson told News360 that his request for import collection documents was recently rejected by a private bank. An email obtained by News360, stating, “As per instructions received from Head Office, all import collection documents under CAD, D/P, D/A etc (other than Letter of Credit) bearing date of shipment on B/L after 31 Dec 2022 will not be entertained by the bank. ”
It further read, “Kindly advise your customers not to submit their said import documents with shipment dates after 31 Dec 2022.”
Economic experts said that the closure of crucial services for businesspersons was an alarming signal for the upcoming economic meltdown which was not being disclosed by the federal government.
A few days ago, Finance Minister Ishaq Dar claimed on Twitter, “Bloomberg pitches Pakistan’s one-year probability of default at a low of 10% as opposed to a highly dubious number of 93% circulated by an unscrupulous local political leader a few days ago.”
“Pakistan will InshaAllah continue to honour its all financial commitments on time,” he added.
#Bloomberg pitches Pakistan’s one year probability of default at a low of 10% as opposed to a highly dubious number of 93% circulated by an unscrupulous local political leader a few days ago.
Pakistan will inshaAllah continue to honor its all financial commitments on time! pic.twitter.com/XPbAH7unEh
— Ishaq Dar (@MIshaqDar50) November 25, 2022