KARACHI: The State Bank of Pakistan (SBP) on Friday asked exporters to bring the backlog of export proceeds to Pakistan by April 30, in an effort to improve foreign exchange inflows in the market.
“In view of the representation received from various stakeholders, it has been 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,” the SBP said in a statement.
The amounts withheld by the banks will also be released to the exporters, it added. In cases where export receipts (fully or partially) are realised after the prescribed period, the authorised dealers (banks) will convert the export proceeds at the prevailing market exchange rate, credit the same into the exporters’ account, and mark a lien on the amount of export proceeds realised by the exporter, according to the SBP.
Banks will place a 3 percent sum under lien if export receipts are delayed for a month. Banks will put a lien on 6 percent of the export proceeds if they are delayed by 31 to 60 days and on 9 percent of the proceeds if they are delayed by more than 60 days.
“FEOD (Foreign Exchange Operations Department) shall file a complaint to Foreign Exchange Adjudication Department (FEAD), SBP-BSC with respect to delay in realisation of export proceeds for all reported cases,” it said.
Subsequently, the authorised dealer will deposit the fine as ordered by FEAD with SBP, out of the amount marked under the 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, it added.
The export proceeds will help improve dollar supplies in the currency market, easing pressure on the rupee. According to SBP, a flexible exchange rate has effectively served as a shock absorber, and it is crucial that this function is complemented by robust export inflows.