KARACHI: The State Bank of Pakistan (SBP) Friday asked exporters to bring delayed export proceeds to Pakistan by April 30, otherwise up to 9 percent of export proceeds amount will be marked as lien.
In order to ensure the timely realization of export proceeds, the SBP has decided to give another chance to exporters. Earlier, in February, the SBP announced to initiate necessary action in all those export cases where full export proceeds were not realized within prescribed time period as defined in Foreign Exchange Manual.
In view of the representation received from various stakeholders, now the 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 and their export proceeds will be converted into PKR and released to them in a normal fashion.
SBP takes steps aimed at timely realisation of export proceeds
Accordingly, the amounts withheld by Authorized Dealers (ADs) in pursuance of the previous instructions will also be released to exporters.
It has also been decided to further amend the instructions and accordingly paragraph 33A, Chapter 12 of FE Manual to lien a certain amount in case of delay in realization of export proceeds.
As per revised instruction under Para 33A titled “Delayed Realization of Export Proceeds,” in cases where export proceeds (fully or partially) are realized after the prescribed period, the AD will convert the export proceeds at the prevailing market exchange rate, credit the same into the exporters’ account and will also mark a lien, prescribed by SBP, on the amount of export proceeds realized by the exporter.
ADs have been directed to mark 3 percent amount a lien on the amount of export proceeds delayed by up to 30 days. Some 6 percent amount will be marked as lien on the amount of export proceeds delayed 31 to 60 days and some 9 percent amount will be marked as lien in case of delay of beyond 60 days.
Banks have been asked to submit a consolidated statement regarding all such liens by the by Head/Principal Offices of the bank to the Director, Foreign Exchange Operations Department (FEOD), SBP-BSC on weekly basis as per prescribed format.
FEOD will file a complaint to Foreign Exchange Adjudication Department (FEAD), SBP-BSC with respect to delay in realization of export proceeds for all reported cases.
Subsequently, AD will deposit the fine as ordered by FEAD with SBP (out of the amount marked under lien and release the remaining amount to the exporter. In case FEAD does not impose any fine on the exporter, the entire amount under lien would be released to the exporter.
Copyright Business Recorder, 2023