PAYMENT POLICIES

1. General Restrictions
 

• As per SBP (State Bank of Pakistan) regulations, export credit terms are not permissible.

• All payments must be secured and confirmed through approved banking channels.

• No consignment sales, barter, or unsecured credit arrangements are allowed.
   

2. Standard Payment Terms
 

• Shipments of 08 Containers or More

  • Payment must be made via Irrevocable Sight Letter of Credit (LC), issued by a first-class/reputable international bank, and confirmed by a Pakistani bank.

  • The LC must be opened prior to shipment and remain valid until payment clearance.

• Shipments Less than 08 Containers (Trial or Initial Orders)

  • Payment shall be made through Advance Payment 30% for returning clients & 50% for new clients (TT/Swift transfer) OR Cash Against Documents (CAD) against scanned Copy of B/L & Documents

  • Payment shall be made through Advance Payment 30% for returning clients & 50% for new clients (TT/Swift transfer) OR Documents Against Payment (D/P) with involvement of the Banks

  • Made To the order of Issuing Bank

  • The Notify party will be the applicant
     

3. Notes for Buyers
 

• Documentary Compliance: All commercial invoices, packing lists, and shipping documents will be prepared in strict compliance with SBP foreign exchange and export documentation requirements.

• Banking Charges: All banking charges outside Pakistan are to be borne by the buyer.
   

4. Free Trade Agreement (FTA) Countries
 

Pakistan has signed FTAs and PTAs (Preferential Trade Agreements) with the following countries/regions:

• China – Pakistan-China Free Trade Agreement (Phase II operational since Jan 2020)

• Malaysia – Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA)

• Sri Lanka – Pakistan-Sri Lanka Free Trade Agreement

• SAARC Countries – Under SAFTA (South Asian Free Trade Area) agreement

• Iran – Pakistan-Iran Preferential Trade Agreement

• Indonesia – Preferential Trade Agreement between Pakistan and Indonesia

• Mauritius – Pakistan-Mauritius PTA

• Turkey – Trade in Goods Agreement (Pak-Turkey FTA, 2022)

Buyers from these countries may enjoy preferential duty/tariff benefits under the respective trade agreements, subject to proper issuance of a Certificate of Origin (COO) from Pakistan.