SBP allows exchange companies to import cash US dollars

July 26, 2023 (MLN): The State Bank of Pakistan on Tuesday announced that Exchange Companies (EC), on need basis, may import cash US Dollars against the value of their export consignments of permissible foreign currencies within five working days, through reputed cargo/security companies, said a notice issued on the same day.

The notice states that this arrangement shall be in place until December 31, 2023.

“It will be subject to the condition that total cash US Dollars imported by an Exchange Company during this period shall not exceed 50% of the value of its export consignments,” the notice reads.

It is worth noting, that the EC were allowed to export permissible foreign currencies other than US Dollars through cargo/security companies and repatriate equivalent US Dollars in their foreign currency accounts maintained with banks in Pakistan, within five working days from the date of export of foreign currencies.

However, with the aforementioned development, cash dollars can be brought in through cargo or security companies.

The notice further states that Exchange Companies, at the time of import of US Dollars Cash through their cargo/security companies, shall give prior written intimation to the Director, Foreign Exchange Operations Department (FEOD), SBP Banking Services Corporation (SBP-BSC), Karachi, and copy the same to the SBP-BSC staff at SBP-Customs Joint Booth at the designated airports.

Additionally, they will also provide original deal ticket of foreign bank/exchange company clearly showing the amount of cash US Dollars imported, along with Annexure-8, which shall be signed and stamped by SBP-BSC officials at the booth after verification.

The foreign government’s customs and/or other export documents in original must also be submitted at SBP-Customs Joint Booth, which SBP-BSC officials shall also stamp.

The exchange company will retain a copy of these signed and stamped documents for on-site inspection by the State Bank’s inspection team.

“The import consignment shall be verified as per procedure laid down for export of foreign currencies,” it reads.

After verifications, the consignment shall be packed again, sealed, and handed over to the cargo/security Company for onward delivery to the exchange company.

It was further highlighted that the ECs must comply with all the relevant laws and regulations including those of the jurisdiction from where US Dollars cash is being imported.

“Exchange Companies shall ensure that all transactions related to the import of cash shall be properly reflected in their books of accounts,” it further reads.

Accordingly, Annexure-8 has been introduced by the SBP which is a declaration form to be submitted to the SBP booth at the airport arrival lounge, specifying the imported cash USD declared to be submitted for counting and inspection for clearance.

Furthermore, amendments have been made in Annexure-5 and Annexure-9.

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