Wednesday Jan 05, 2022
In a bid to stabilise the inflow of foreign exchange, the State Bank of Pakistan (SBP) has directed exporters to bring proceeds within 120 days from the date of shipment.
According to a notification issued in this regard, the central bank said: "With an objective to improve the timely inflow of foreign exchange from exports proceeds in the market, SBP has amended foreign exchange regulations requiring exporters to bring export proceeds within a maximum period of 120 days from date of shipment."
It is worth mentioning that earlier, the exporters were required to bring their export proceeds within a maximum period of 180 days. The central bank noted that this move would also bring Pakistan’s regulations closer to international best practices.
"The new measure is expected to positively impact foreign exchange inflows in the market," the statement read.
Keeping in view the widening current account and trade deficit, the central bank has been continuously taking measures to facilitate exporters to promote exports of Pakistan.
In the recent past, SBP introduced several policy measures in its foreign exchange regulations in this regard, which include:
Allowing up to 10% of exporters’ annual exports for equity investment abroad to establish overseas subsidiary/branch office
Allowing exporters who are eligible to retain part of their export proceeds to make payments abroad from their export retention account for several additional purposes including marketing and promotions, purchase of design/ patterns, warehousing, consultancy service etc.
Facilitating e-commerce by allowing exporters to sell their products directly through their websites as well as through international digital marketplaces including Amazon, e-Bay, Ali Baba and
Allowing exports by way of dispatch of shipping documents directly to the foreign buyer, to make exporters competitive in the international market.
The Pakistani rupee has maintained the downtrend for the past eight months as it has lost 16.07% (or Rs24.47) to date, compared to the 22-month high of Rs152.27 recorded in May 2021.
However, the SBP is of the view that flexible exchange rate has appropriately played its role as a "shock-absorber" and its role must be complemented by strong exports proceed realisation.