KARACHI: For ensuring the timely realisation of export proceeds, the State Bank of Pakistan (SBP) has decided to initiate necessary action in all those cases where full or partial proceeds are not realised within the prescribed period.
In a circular issued on Tuesday, the central bank directed banks [authorised dealers] to adopt the following procedure at the time of conversion of export proceeds into rupees.
The banks will compare the weighted average buying rate published by SBP on the date of realisation (i.e. rate-A) with the same rate published by on the last day of the prescribed period, after addition of the grace period (i.e. rate B).
In case rate-A is higher than rate-B, the banks will convert the export proceeds at rate-A, but pay the export proceeds at rate-B to the exporter and will keep the difference amount in a separate account opened by them for the purpose.
A consolidated statement regarding all such differences collected will be submitted by principal offices of the banks to the director Foreign Exchange Operations Department (FEOD), SBP-BSC on weekly basis.
Banks will deposit the said difference with SBP or refund the same to the exporter.
These instructions will not be applicable in cases of export bills or export receivables that are discounted by the exporter to the banks.
“These instructions will come into effect as of March 1, 2023,” said the SBP circular.
Published in Dawn, February 15th, 2023
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