Banking procedures are integral part of the trade operations. Any delay in completion of these procedures results in increased cost. The Trade and Transport Facilitation Project recognized the need to work for simplification of certain banking procedures and developed a dual strategy: seminars on proper application of documentary credit rules and simplification of export-related banking procedures.

International rules for documentary credits
Most of the trade banking procedures follow the rules issued by International Chamber of Commerce (ICC). During recent years ICC realized the need for issuance of new rules and banking practices to accommodate the electronic presentation of documents and develop certain standards for banking practices around the globe. Soon after the issuance Electronic Uniform Customs and Practice (eUCP) and International Standard Banking Practice (ISBP) TTFP arranged seminars, delivered by one of the experts actually involved in the drafting these rules. These seminars have been conducted in Karachi, Lahore and Islamabad.

Simplification of banking procedures
The Goods Declaration (GD) has been introduced successfully within Pakistan Customs and has replaced ten documents. With implementation of GD it is now possible to transfer data electronically from Customs/PRAL to State Bank of Pakistan (SBP). This will facilitate replacement of current Form E practices with simpler and more efficient procedures. Discussion is underway with the stakeholders to assess the feasibility of substituting Form E with the GD.

Establishment of a Working Group on Banking

The National Trade and Transport Facilitation Committee will establish a Working Group on Banking with the participation of State Bank of Pakistan, Pakistan Banks Association, National Institutional Facilitation Technologies (NIFT), Institute of Bankers, Export Promotion Bureau, and ICC Pakistan. The Working group will undertake the following activities:

• Comprehensive review of the Pakistan’s international
  trade finance procedures.

• Identification of areas for simplification

• Development and promotion of more efficient and effective procedures.

• Make recommendations to the NTTFC as appropriate
  on future work on trade regulations.

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