SBP revises export undertaking for receipt of export proceeds

KARACHI: The State Bank of Pakistan (SBP) has revised the export undertaking and declaration requirements in the Pakistan Single Window (PSW) for the receipt of export proceeds.

In a circular issued to authorized dealers, the State Bank referred to existing instructions contained in Para 5(ii) and 15B(ii) of Chapter 12 (Exports) of Foreign Exchange Manual, whereby exporters of goods are required to file Undertaking/Declaration in PSW system for receipt of payments through an Authorized Dealers (AD), as prescribed by the SBP.

Keeping in view changing business needs and ongoing system upgrades, the SBP has amended the undertaking and declaration format.

Under the new instructions, authorized dealers are required to obtain the revised undertaking or declaration from exporters through the PSW system at the time of initiating export transactions. Further, to mitigate any potential legal risks, ADs may obtain the revised Undertaking/ Declaration duly signed by Exporters in manual form as well.

The SBP has directed authorized dealers to inform all their constituents about the revised requirements and ensure strict compliance with the updated instructions.

As per undertaking, an incorrect declaration constitutes an offence under Pakistan Penal Code 1860, Foreign Exchange Regulation Act, 1947 (VII of 1947), Customs Act 1969, and Anti Money Laundering Act 2010.

Under the declaration, exporters confirm that they are the sellers, consignors, or exporters of the goods concerned and that all particulars provided in the financial instruments are true and accurate. They affirm that the invoice value declared represents the full contractual value agreed with the buyer in the case of firm contracts, or a fair market value in the case of consignment sales.

Exporters further undertake to ensure the repatriation of foreign exchange proceeds to the AD within the contractual maturity period or within the timeframe prescribed by the SBP, calculated from the date of shipment or dispatch, whichever occurs earlier.

In the case of consignment sales, exporters commit to submitting a fully documented and certified account of sales to the AD, duly verified by the consignee, the chamber of commerce of the importing country, required by the SBP.

The declaration also requires exporters to confirm that no material information has been omitted or suppressed and that all statements made are true to the best of their knowledge and belief. They are additionally required to submit shipping and trade documents to the authorized dealer within 14 days of shipment for negotiation or collection purposes.

Exporters expressly authorize the SBP to share outstanding overdue information with banks, for the purpose of conducting due diligence related to export activities. It also permits the ADs to access outstanding overdue information available on the Exporter’s Information Portal (EIP) maintained by SBP.

This authorization is given in terms of Section 3(4) of the Foreign Exchange Regulation Act, 1947, to facilitate the assessment of export performance and repatriation of proceeds thereof.

Copyright Business Recorder, 2026