Export proceeds: SBP amends foreign exchange regulations

The State Bank of Pakistan (SBP) amended on Wednesday foreign exchange regulations requiring exporters to bring export proceeds within a maximum period of 120 days from the date of shipment.

According to the circular issued by the SBP, the decision was made with an objective to "improve the timely inflow of foreign exchange from exports proceeds in the market."

The circular noted that previously the exporters were required to bring their "export proceeds within a maximum period of 180 days".

"This move also brings Pakistan’s regulations closer to international best practices," the SBP said.

"The new measure is expected to positively impact foreign exchange inflows in the market."

"The SBP is of the view that a flexible exchange rate has appropriately played its role as a shock-absorber and it is important that its role be complemented by strong exports proceed realisation."

The amendment comes as Pakistan's rupee hit a new all-time low last week, depreciating close to the 179 level before registering some gains. The rupee has been under pressure since May last year, having lost nearly 14% of its value against the US dollar. It closed at 176.74 in the inter-bank market on Wednesday.