KARACHI: The State Bank of Pakistan (SBP) has issued updated instructions for foreign exchange companies, allowing them to import cash US dollars against the value of permissible foreign currencies in their export consignments.
This update falls under the new paragraph titled ‘Import of Cash US Dollars through Cargo/Security Companies’ in Chapter 5 of the Exchange Companies Manual.
According to the updated terms, this arrangement will be in effect until December 31, 2023. However, there is a condition that the total cash dollars imported by an exchange company during this period should not exceed 50% of the value of its export consignments.
To facilitate this process, exchange companies are required to include this arrangement in their deal with overseas entities. The deal ticket generated by the system must also include details of the amount to be imported as cash dollars, if applicable, out of the total export consignment.
Before importing US dollars in cash through their cargo or security companies, exchange companies must provide prior written intimation to the Director of Foreign Exchange Operations Department, SBP Banking Services Corporation, Karachi. Additionally, they need to copy the same to the SBP-BSC staff at SBP-Customs Joint Booth at designated airports.
During the import process, exchange companies must submit the original deal ticket from the foreign bank or exchange company, clearly indicating the amount of cash US dollars being imported. Alongside, Annexure-8, signed and stamped by SBP-BSC officials at the booth after verification, must also be provided.
Moreover, exchange companies must submit the foreign government’s customs and/or other export documents in original at the SBP-Customs joint booth, which will also be stamped by SBP-BSC officials.
It is crucial for the exchange companies to keep a copy of these signed and stamped documents in their records, as they may be inspected on-site by the State Bank’s inspection team.