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KARACHI: The State Bank of Pakistan (SBP) Friday asked exporters to bring delayed export proceeds to Pakistan by April 30, otherwise up to 9 percent of export proceeds amount will be marked as lien.

In order to ensure the timely realization of export proceeds, the SBP has decided to give another chance to exporters. Earlier, in February, the SBP announced to initiate necessary action in all those export cases where full export proceeds were not realized within prescribed time period as defined in Foreign Exchange Manual.

In view of the representation received from various stakeholders, now the SBP has decided that exporters who are able to bring their delayed export proceeds to Pakistan by April 30, 2023 will not face any deductions and their export proceeds will be converted into PKR and released to them in a normal fashion.

SBP takes steps aimed at timely realisation of export proceeds

Accordingly, the amounts withheld by Authorized Dealers (ADs) in pursuance of the previous instructions will also be released to exporters.

It has also been decided to further amend the instructions and accordingly paragraph 33A, Chapter 12 of FE Manual to lien a certain amount in case of delay in realization of export proceeds.

As per revised instruction under Para 33A titled “Delayed Realization of Export Proceeds,” in cases where export proceeds (fully or partially) are realized after the prescribed period, the AD will convert the export proceeds at the prevailing market exchange rate, credit the same into the exporters’ account and will also mark a lien, prescribed by SBP, on the amount of export proceeds realized by the exporter.

ADs have been directed to mark 3 percent amount a lien on the amount of export proceeds delayed by up to 30 days. Some 6 percent amount will be marked as lien on the amount of export proceeds delayed 31 to 60 days and some 9 percent amount will be marked as lien in case of delay of beyond 60 days.

Banks have been asked to submit a consolidated statement regarding all such liens by the by Head/Principal Offices of the bank to the Director, Foreign Exchange Operations Department (FEOD), SBP-BSC on weekly basis as per prescribed format.

FEOD will file a complaint to Foreign Exchange Adjudication Department (FEAD), SBP-BSC with respect to delay in realization of export proceeds for all reported cases.

Subsequently, AD will deposit the fine as ordered by FEAD with SBP (out of the amount marked under lien and release the remaining amount to the exporter. In case FEAD does not impose any fine on the exporter, the entire amount under lien would be released to the exporter.

Copyright Business Recorder, 2023


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Tulukan Mairandi Apr 01, 2023 09:45am
What a self damaging policy. That's why apart from terrorism and chaos, we are really not exporting anything significant
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Abdullah Apr 01, 2023 11:22am
Excellent policy.dollar manipulation needs to stop.infact we should put up a tax of 50 percent on intentionally delayed proceeds
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Mushraf Khan Apr 01, 2023 11:36am
@Tulukan Mairandi, you need to understand the technicals please before commenting. These USDs are deliberately being held outside Pak by exporters which should come back to exporters in Pak. These exporters have held these outside Pak to gain advantage on exchange rate.
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Shahbaz Ali Apr 01, 2023 05:20pm
Such exporters are cutting the the branch on which they are sitting. Pakistan is getting bad publicity due to forex crises which is party caused by some greedy exporters. And due to these bad publicity overseas importers have reduced orders. Just to get some sort term benefit, these exporters are damaging their country and business in long term.
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KhanRA Apr 01, 2023 05:23pm
@Mushraf Khan, No - exporters are holding reserves outside Pakistan because the country is on verge of bankruptcy, and they rightfully worry that the government will seize their dollars if the money is in Pakistani banks. Remember that Dar insinuated the dollars in private banks can be used by the State to repay loans. The rupee is plunging because of Ishaq Dar’s idiotic attempt to defy logic by depleting foreign exchange reserves to prop up the rupee. Not because of exporters.
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Builder Apr 01, 2023 07:09pm
@KhanRA, Dar may be stupid but export proceeds should be in the country and if government wants to use public funds to repay loans, let it be. We are all responsible for this mess as we are all corrupt, tax evaders.
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