KARACHI: The State Bank of Pakistan (SBP) on Monday granted one-year extension to Exchange Companies (ECs) for the import of cash US dollars, ie, up to 50 percent of the value of their export of permissible foreign currencies through reputed cargo or security companies.
Initially, ECs were allowed to export permissible foreign currencies other than US dollars through cargo or security companies and repatriate equivalent US Dollars in their foreign currency accounts maintained with banks in Pakistan, within five working days from the date of export of foreign currencies.
However, in July last year, the SBP amended the Exchange Companies Manual (ECM) and allowed import of cash dollars in order to facilitate ECs. As on July 25, 2023, ECs were allowed to import cash US Dollars against the value of their export consignments of permissible foreign currencies within five working days, through reputed cargo or security companies. This permission was initially granted for five months i.e. till December 31, 2023 subject to the condition that total cash US Dollars imported by an Exchange Company during this period shall not exceed 50 percent of the value of its export consignments.
In March this year, the SBP announced the first extension of six months, whereby the ECs were allowed to import cash US Dollars up to 50 percent of the value of their export consignments till June 30, 2024. Now on Monday, the SBP has announced another extension of one year to the ECS for the import of cash US dollars against the export consignments of permissible foreign currencies through reputed cargo or security companies. “In order to ensure adequate supply of cash USD in the open market, the validity of import of cash dollars is hereby extended till June 30, 2025”, a circular issued by the SBP said. While, all other terms and conditions for this facility will remain unchanged, it added.
Exchange Companies are required to give prior written intimation to the Director, Foreign Exchange Operations Department (FEOD), SBP Banking Services Corporation (SBP-BSC), Karachi, at the time of import of US Dollars Cash through their cargo or security companies. The import consignment will be verified as per procedure laid down for export of foreign currencies. After verifications, the consignment will be packed again, sealed and handed over to the cargo or security Company for onward delivery to the exchange company.
Copyright Business Recorder, 2024
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