BAFL 51.82 Decreased By ▼ -0.69 (-1.31%)
BIPL 22.37 Decreased By ▼ -0.43 (-1.89%)
BOP 5.63 Decreased By ▼ -0.05 (-0.88%)
CNERGY 4.96 Decreased By ▼ -0.13 (-2.55%)
DFML 18.84 Decreased By ▼ -0.51 (-2.64%)
DGKC 79.66 Decreased By ▼ -1.14 (-1.41%)
FABL 32.51 Decreased By ▼ -0.59 (-1.78%)
FCCL 19.84 Decreased By ▼ -0.39 (-1.93%)
FFL 10.61 Increased By ▲ 0.04 (0.38%)
GGL 13.53 Decreased By ▼ -0.09 (-0.66%)
HBL 124.52 Decreased By ▼ -5.65 (-4.34%)
HUBC 119.55 Decreased By ▼ -3.07 (-2.5%)
HUMNL 7.92 Decreased By ▼ -0.13 (-1.61%)
KEL 4.49 Increased By ▲ 0.04 (0.9%)
LOTCHEM 27.82 Decreased By ▼ -0.10 (-0.36%)
MLCF 41.76 Decreased By ▼ -0.94 (-2.2%)
OGDC 125.24 Decreased By ▼ -0.37 (-0.29%)
PAEL 22.04 Increased By ▲ 0.69 (3.23%)
PIBTL 6.25 Increased By ▲ 0.13 (2.12%)
PIOC 116.05 Decreased By ▼ -1.95 (-1.65%)
PPL 113.96 Increased By ▲ 0.11 (0.1%)
PRL 30.11 Decreased By ▼ -1.69 (-5.31%)
SILK 1.25 Increased By ▲ 0.15 (13.64%)
SNGP 70.12 Increased By ▲ 0.72 (1.04%)
SSGC 13.56 Decreased By ▼ -0.16 (-1.17%)
TELE 9.51 Increased By ▲ 0.27 (2.92%)
TPLP 15.13 Increased By ▲ 0.38 (2.58%)
TRG 97.42 Increased By ▲ 4.57 (4.92%)
UNITY 28.26 Increased By ▲ 0.76 (2.76%)
WTL 1.71 Increased By ▲ 0.05 (3.01%)
BR100 6,781 Decreased By -34.3 (-0.5%)
BR30 23,966 Decreased By -279.4 (-1.15%)
KSE100 66,012 Decreased By -211.3 (-0.32%)
KSE30 22,048 Decreased By -75.1 (-0.34%)

KARACHI: In order to ensure the timely arrival of foreign exchange, the State Bank of Pakistan (SBP) Wednesday announced to reduce the period of exports proceed realization by 60 days and now the exporters will be required to bring export proceeds within a maximum period of 120 days from date of shipment.

The SBP expects that the new measure will have a positive impact on foreign exchange inflows in the market. It is of the view that flexible exchange rate has appropriately played its role as a shock-absorber and it is important that its role be complemented by strong exports-proceeds realization.

Accordingly, SBP has amended the Para 6, Chapter 12 of Foreign Exchange (FE) Manual, which includes instructions relating to the export proceeds realizations.

With an objective to improve the timely inflow of foreign exchange from exports proceeds in the market, State Bank has amended foreign exchange regulations requiring exporters to bring export proceeds within a maximum period of 120 days from date of shipment.

The SBP has reduced the period of export proceeds realization by 60 days as earlier the exporters were required to bring their export proceeds within a maximum period of 180 days.

Export proceeds: SBP amends foreign exchange regulations

SBP also believed that this move also brings in Pakistan’s regulations closer to international best practices.

These changes will be applicable on all transactions authorized by the Authorized Dealers including approval of electronic/ manual Form-E or issuance of financial instrument in Pakistan Single Window with effect from January 6, 2022. Realization of export proceeds for earlier transactions may be undertaken as per the instructions applicable at the time of execution of such transactions.

According to amended Para 6, Chapter 12-Method and Period of Payment, full export value of goods exported from Pakistan and declared to the Customs authorities should be received in an approved manner on the due date for payment or within one hundred and twenty (120) days from the date of shipment, whichever is earlier, or within such period as may be prescribed by SBP through specific or general instruction, through an Authorized Dealer either in convertible foreign currency in which the Authorized Dealer maintains accounts or in Pakistan rupee from a re-partible rupee account of a non-resident.

In case of shipment on Documents Against Payment/CAD/ sight basis the payment should be received within 45 days from date of shipment. Prior approval of the Exchange Policy Department, SBP should be obtained before arranging for payment in any manner other than that mentioned above.

In addition, where the terms of sale provide for payment earlier than 120 days, including DP/CAD/ sight bills, Authorized Dealers may allow extension in the realization period if they are satisfied with the written explanation given for delay in realization by the exporter.

Such explanation must be supported by documents/ communication from the foreign buyer and the extension must not exceed the period beyond 120 days from the date of shipment. Authorized Dealers shall not allow extension in the realization period, once they have reported the case as overdue to SBP-BSC, SBP mentioned.

Import purposes: ECs ask SBP to restrict banks from $ forward booking

SBP said that, in the recent past, it has introduced a number of policy measures in its foreign exchange regulations to facilitate exporters.

These include allowing up to 10 percent of exporters’ annual exports for equity investment abroad to establish overseas subsidiary/ branch office and allowing exporters who are eligible to retain part of their export proceeds to make payments abroad from their export retention account for a number of additional purposes including marketing & promotions, purchase of design/ patterns, warehousing, consultancy service, etc.

In addition, SBP allowed facilitating e-Commerce by allowing exporters to sell their products directly through their own websites, as well as, through international digital marketplaces including Amazon, e-Bay, Ali Baba and allowed exports by way of dispatch of shipping documents directly to the foreign buyer, to make exporters competitive in the international market.

Copyright Business Recorder, 2021


Comments are closed.