Karachi February 14 2023: State Bank of Pakistan devises mechanism for all those export cases where full export proceeds are not realized within prescribed time period.
State Bank of Pakistan make changes in regulation provides the procedure for dealing with cases relating to non-realization or delay in realization of the export proceeds.
In order to ensure timely realization of export proceeds, it has been decided to initiate necessary action in all those export cases where full export proceeds are not realized within prescribed time period as defined in Para 6 of Chapter 12 of the FE Manual. Accordingly, a new para 33A has been inserted as “33A Delayed Realization of Export Proceeds”.
In cases where export proceeds (fully or partially) are realized after the prescribed period (as stipulated in Para 6 of this Chapter), the Authorized Dealers shall adopt the following procedure at the time of conversion of export proceeds into PKR. The Authorized Dealers shall compare the weighted average buying rate published by SBP on the date of realization (i.e. Rate-A) with the same rate published by SBP on the last day of the prescribed period, after addition of the grace period, if any (i.e. Rate B).
In case Rate-A is higher than Rate-B, the Authorized Dealers shall convert the export proceeds at Rate-A, but pay the export proceeds at Rate-B to the exporter and shall keep the difference amount in a separate account opened by them for the purpose.
A consolidated statement regarding all such differences collected by the Authorized Dealers will be submitted by Head/Principal Offices of the Authorized Dealers to the Director, Foreign Exchange Operations Department (FEOD), SBP-BSC on weekly basis as per prescribed format (Appendix V-20A).
FEOD, SBP-BSC shall file a complaint to Foreign Exchange Adjudication Department (FEAD), with respect to delay in realization of export proceeds.
AD shall deposit the said difference, as ascertained in (b) above, with SBP or refund the same to the exporter, as decided by FEAD.
These instructions will come into effect as of March 1, 2023.
These changes will not be applicable in cases of export bills/ export receivables that are discounted by the exporter to the AD.
