April 01, 2023 (MLN): The State Bank of Pakistan (SBP) has decided that exporters who are able to bring their delayed export proceeds to Pakistan by April 30, 2023, will not face any deductions. Their export proceeds will be converted into PKR and released to them in a normal fashion, the circular issued to all Authorized Dealers (ADs) in Foreign Exchange on Friday revealed. 

"Attention of Authorized Dealers (ADs) is invited to FE Circular No. 01 dated February 13, 2023, which sets out the instructions relating to the delayed realization of export proceeds by exporters," it added.  

The amounts withheld by the ADs in pursuance of the above-mentioned instructions will also be released to the exporters.

Any further delay in bringing export proceeds will result in penalties. The ADs will mark a lien on the amount of export proceeds realized by the exporter if delayed for one month, 3% from the given time limit of 30 days. Between one to 2 months, the penalty will be 6%, and over 60 days, the penalty will be 9%.

This move by the SBP is aimed at encouraging the timely repatriation of export proceeds, which is vital for the country's economic stability. 

It has also been decided to further amend the instructions conveyed vide above mentioned circular and accordingly paragraph 33A, Chapter 12 of FE Manual has been revised, as under:

“33A Delayed Realization of Export Proceeds

1. In cases where export proceeds (fully or partially) are realized after the prescribed period (as stipulated in Para 6 of this Chapter), the AD shall convert the export proceeds at the prevailing market exchange rate, and credit the same into the exporters’ account.
2. A consolidated statement regarding all such liens by the AD will be submitted by the Head/Principal Offices of the ADs to the Director, Foreign Exchange Operations Department (FEOD), SBP-BSC on weekly basis. 
3. FEOD shall file a complaint to the Foreign Exchange Adjudication Department (FEAD), SBP-BSC with respect to delay in the realization of export proceeds for all reported cases. Subsequently, AD shall deposit the fine as ordered by FEAD with SBP and release the remaining amount to the exporter. In case FEAD does not impose any fine on the exporter, the entire amount under the lien would be released to the exporter.
4. The above instructions will not be applicable in cases of export bills/ export receivables that are discounted by the exporter to the AD.

The above instructions will be applicable with immediate effect.

"Authorized Dealers are advised to bring the above instructions to the knowledge of all their constituents and ensure meticulous compliance with the above instructions, the circular read. 

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Posted on: 2023-04-01T06:01:57+05:00