State Bank of Pakistan (SBP) Friday granted another three months extension to Exchange Companies (ECs) for the import of cash US dollars against export of permissible foreign currencies. Lifting a 10-year ban on July 28, 2015, State Bank permitted ECs to import US dollars for three months. Initially, this arrangement was from August 3, 2015 to October 15, 2015. However, in October 2015, SBP granted first extension and ECs were asked to continue import of cash US dollars against export of permissible foreign currencies upto January 15, 2016.
Now, on request of Exchange Companies Association of Pakistan (ECAP), SBP has granted second for another three months. According to EPD Circular Letter No. 01 of 2016 issued on Friday, it has been decided to extend this arrangement upto April 15, 2016 unless advised otherwise. All other terms and conditions on the subject will, however, remain unchanged, it added. Previously, only banks were allowed to import cash dollar against the export of permissible foreign currencies and all exchange companies were surrendering permissible foreign currencies with these authorised dealers.
As per the procedure, the exchange company will give a prior written intimation to relevant SBP-Customs Joint Booth at the time of export of foreign currencies, clearly mentioning the amount of cash US Dollars to be imported, flight number and time of arrival of flight at Karachi with copies to Director EPD, SBP and Director FEOD, SBP BSC.
ECs must ensure due diligence and compliance to all relevant Anti-Money Laundering laws in respect of cross-border transfers, which may be enforced from time to time in Pakistan as also in the respective jurisdiction from where US dollars are imported.
Meanwhile, Zafar Paracha, General Secretary ECAP, has appreciated SBP''s move for another extension in import of US dollars. He said that SBP''s permission will ensure sufficient supply of dollar in the domestic market and help keep the exchange rate stable.