Karachi, September 23, 2024 – The State Bank of Pakistan (SBP) has announced an extension in the validity period for the import of cash US dollars by exchange companies until June 30, 2025. This decision comes as a continuation of the SBP’s earlier facility, which allowed exchange companies to import up to 50% of the value of their export consignments in cash US dollars.
Initially, the SBP had introduced this facility in 2023 to help stabilize the foreign exchange market and facilitate exchange companies in meeting the increasing demand for cash dollars. The arrangement was extended into 2024, and the latest announcement ensures its continuation through mid-2025.
Guidelines for Dollar Imports
According to the SBP’s guidelines, issued on July 25, 2023, exchange companies are permitted to import cash US dollars, on a need basis, against the value of their foreign currency export consignments. This import must be carried out within five working days through reputed cargo or security companies. The key condition remains that the imported cash US dollars cannot exceed 50% of the total value of their export consignments during the specified period.
The system ensures that each exchange company includes this arrangement in their deal with the overseas entity. To ensure transparency, the deal ticket must clearly specify the amount of cash US dollars being imported, alongside the details of the total export consignment.
Reporting and Verification Procedures
The SBP has put in place a strict verification and reporting mechanism for exchange companies involved in importing cash dollars. At the time of import, exchange companies must provide prior written notice to the Director of the Foreign Exchange Operations Department (FEOD) at SBP Banking Services Corporation (SBP-BSC) in Karachi. Additionally, copies of the intimation must be sent to SBP-BSC staff at the SBP-Customs Joint Booth located at designated airports.
The companies must also submit original documentation, including the deal ticket and any foreign government customs or export documents, to SBP-BSC officials. These documents must be verified, stamped, and retained by both the exchange company and SBP for potential on-site inspections by the SBP’s regulatory teams.
Compliance with Regulations
The SBP has emphasized that exchange companies must ensure full compliance with all relevant laws, both domestic and those of the jurisdiction from which the US dollars are being imported. Furthermore, all transactions related to the import of cash must be accurately reflected in the exchange company’s books of accounts.
This extension in the cash dollar import facility is expected to provide greater flexibility for exchange companies in managing their foreign currency operations, while ensuring compliance with the SBP’s strict regulatory framework. The move comes amid ongoing efforts to stabilize Pakistan’s foreign exchange reserves and ensure smooth operations within the exchange market.