KARACHI: In a move to streamline provincial finances, Sindh Chief Minister Syed Murad Ali Shah has approved a new system for the issuance and processing of import Letters of Credit (LCs) through the state-owned Sindh Bank. The decision was formalized during a provincial cabinet meeting, where it was decided that all government departments are now required to route their LCs exclusively through Sindh Bank, moving away from the previous practice of utilizing various private financial institutions.
Key Features of the New Policy The Chief Minister emphasized that the primary goal is to enhance transparency and improve fiscal monitoring of provincial expenditures. The cabinet was briefed that the practice of distributing government funds across various private banks has been abolished to ensure better financial management. This move is expected to significantly strengthen the trade finance activities of Sindh Bank while positioning it as a key player in the province’s economic landscape. Furthermore, officials informed the cabinet that the new system would reduce unnecessary fees often charged by private banks and provide better control over exchange rate margins.
Commitment to Transparency CM Murad Ali Shah directed all provincial departments to strictly adhere to this new protocol. He reiterated that ensuring financial discipline and safeguarding public funds remains the government’s top priority. By centralizing these transactions, the Sindh government expects to gain more accurate data on imports and improve the overall efficiency of the provincial treasury.
