The State Bank of Pakistan (SBP) has granted permission to exchange companies to import cash US Dollars as needed, against the value of their permissible foreign currency export consignments. This move comes under a new arrangement that allows reputed cargo/security companies to facilitate the process within a five-day window.
Conditions and Duration
This arrangement will be effective until December 31, 2023, with the condition that the total cash US Dollars imported by an exchange company during this period does not exceed 50 percent of the value of its export consignments. The circular issued by the SBP outlines these guidelines.
Procedure for Importing Cash US Dollars
To avail of this opportunity, exchange companies are required to include such arrangements in their dealings with overseas entities. The system-generated deal ticket should specify the amount of cash US Dollars to be imported, if any, as part of the total export consignment.
Prior Intimation and Verification Process
Before importing US Dollars through their cargo/security companies, exchange companies must submit a prior written intimation to the Director of the Foreign Exchange Operations Department (FEOD) at SBP Banking Services Corporation (SBP-BSC) in Karachi. Additionally, a copy of the intimation must be sent to the SBP-BSC staff at SBP-Customs Joint Booth at the designated airports.
Upon import, exchange companies need to provide an original deal ticket from a foreign bank/exchange company, clearly indicating the amount of cash US Dollars imported. This document will be verified and stamped by SBP-BSC officials at the booth.
Compliance and Record-Keeping
To ensure compliance with relevant laws and regulations, exchange companies must adhere to the rules of the jurisdiction from where US Dollars are being imported. All transactions related to cash import should be accurately recorded in their books of accounts. Furthermore, a copy of the stamped documents and foreign government’s customs/export documents must be retained in their records for on-site inspection by the State Bank’s inspection team.
Existing Export and Repatriation Process
It’s important to note that exchange companies already have the authority to export permissible foreign currencies (other than US Dollars) through cargo/security companies and repatriate an equivalent amount of US Dollars to their foreign currency accounts maintained with banks in Pakistan within five working days from the date of export of foreign currencies.
