Karachi, March 29, 2024 – The State Bank of Pakistan (SBP) has announced an extension to the deadline for the import of Cash US Dollars by exchange companies.
The decision aims to ensure an adequate supply of cash dollars in the open market, providing relief to businesses and individuals grappling with currency exchange challenges.
Initially introduced through a circular issued in July 2023, this relaxation was set to expire on December 31, 2023. However, recognizing the ongoing need for such measures, the SBP has extended the deadline until June 30, 2024.
In Circular Letter No. 11 dated July 25, 2023, the SBP permitted exchange companies, on a need basis, to import cash US Dollars against the value of their export consignments of permissible foreign currencies within five working days. This arrangement is facilitated through reputed cargo/security companies. The total cash US Dollars imported by an exchange company during this period is capped at 50% of the value of its export consignments.
Furthermore, exchange companies are required to include this arrangement in their deals with overseas entities. The system-generated deal ticket must incorporate details of the amount to be imported as cash US Dollars, if any, out of the total export consignment.
To ensure transparency and regulatory compliance, exchange companies must provide prior written intimation to the Director of the Foreign Exchange Operations Department (FEOD), SBP Banking Services Corporation (SBP-BSC), Karachi, along with a copy to SBP-BSC staff at SBP-Customs Joint Booth at designated airports. Original deal tickets from foreign banks/exchange companies, clearly indicating the amount of cash US Dollars imported, must be submitted. These documents are then verified, signed, and stamped by SBP-BSC officials at the booth. Additionally, original export documents from foreign governments’ customs and/or other relevant authorities must be provided and stamped for authentication.
Exchange companies are required to maintain records of these documents for on-site inspection by the State Bank’s inspection team, ensuring adherence to regulatory guidelines.
This extension provides a vital lifeline for businesses and individuals reliant on cash US Dollars for various transactions, including international trade and travel. By facilitating the import of cash dollars, the SBP aims to stabilize the foreign exchange market and mitigate the challenges associated with currency shortages.
With the new deadline now set for June 30, 2024, exchange companies have an extended window to leverage this facility, contributing to smoother currency exchange operations and economic stability in Pakistan.
