KARACHI: The State Bank of Pakistan (SBP) has established a facilitation desk to deal with queries pertaining to foreign exchange related remittances and help all stakeholders including multinational companies and domestic businesses.

The central bank also asked the stakeholders to devise benchmarks for processing and due diligence of each type of such transactions.

Private bankers said traders and investors have to face many hurdles if a case goes to the SBP since it takes a lot of time to decide the matter.

“Not all the time but sometime cases are referred to the State Bank and that case could not be resolved in time due to painstaking long procedure,” said a banker, adding that importers have to face issues in opening letter of credits (LCs) while their cases are referred to the State Bank.

Bankers dealing with the foreign exchange said the State Bank keeps an eye on reverse remittances in shape of profits and dividends of foreign companies operating in Pakistan.

“The facilitation desk will provide assistance on foreign exchange related matters pertaining to areas including registration of equity, borrowing contracts, profit repatriation; acknowledgement and approval of royalty, franchise, technical and management services; training and development fees; operational and maintenance charges; lease rentals/maintenance reserves of airlines; legal and advisory services, visa and consulate fee; approval to issue guarantees and standby letter of credits; and any other foreign exchange related matters,” said the SBP.

“There is a need for more facilitation from the central bank regarding the foreign exchange transactions. The number of pending cases with the SBP is increasing. I hope the facilitation desk will help to resolve the related issues,” said Zafar Paracha, General Secretary of Exchange Companies Association of Pakistan.

“The banks are also advised to devise benchmarks for processing and due diligence of each type of transaction and ensure compliance thereof,” said the SBP.

The facilitation desk has been established at Foreign Exchange Operations Department, Banking Services Corporation Karachi and can be accessed through email at facilitation.fx@sbp.org.pk.

Published in Dawn, March 29th, 2019