The minimum margin or cash requirement for opening letters of credit (LCs) for imports is being withdrawn as it does not comply with World Trade Organization (WTO) regulations. As a result, any importer will now be able to open an LC for any quantity of goods. This directive will be included in the new import policy order being prepared for the next three years (2025–28).
It is learned that the Ministry of Commerce has already drafted the new import policy order. Early next week, Commerce Secretary Mahbubur Rahman is scheduled to present the key points of the draft to Commerce Adviser Sheikh Bashir Uddin. Any observations from the adviser will then be incorporated to finalize the draft import policy.
On the matter, Commerce Secretary Mahbubur Rahman told the media that the draft import policy order will be sent to the advisory council for approval. The policy order will indicate that the obligations on LC amounts and minimum margins will no longer apply.
It may be noted that the tenure of the existing import policy order for 2021–24 ended in June 2024. Work on issuing the new order has been ongoing for more than a year.