Karachi, September 12, 2025 – The State Bank of Pakistan (SBP) has introduced detailed timelines for the realization of export proceeds, aiming to bring clarity and discipline to foreign trade transactions.
The updated guidelines, issued under the Foreign Exchange Manual, outline how and when exporters must bring their earnings back into Pakistan.
According to the SBP, exporters are required to ensure that the full value of goods shipped from Pakistan, and declared to customs authorities, is received within the prescribed time. Normally, this means the payment must be realized either by the contractual due date or within 120 days from the shipment date—whichever comes first. These funds must be routed through an Authorized Dealer, either in convertible foreign currency or, in some cases, in Pakistani rupees from a repatriable non-resident account.
For shipments made on documents against payment (DP), cash against documents (CAD), or sight basis, the deadline is stricter, with exporters expected to receive the payment within 45 days of shipment. However, if the sales terms or an irrevocable letter of credit allows for a 120-day window, the SBP permits exporters to bring back proceeds within 135 days. Any alternative arrangement requires prior approval from the Exchange Policy Department of SBP.
In cases where exporters are unable to meet the 120-day deadline, Authorized Dealers may grant an extension if exporters provide a valid written explanation supported by documentation from the foreign buyer. Still, this extension cannot exceed the original 120-day limit once the case has been reported as overdue.
As an exception, the SBP allows up to 180 days for realization, but only if exporters discount or sell their export receivables forward through an Authorized Dealer before shipment or within 14 days after shipment.
The new framework is designed to streamline the flow of foreign exchange, ensure timely payment realization, and safeguard Pakistan’s external sector stability. For exporters, adhering to these timelines is critical, not only for compliance but also for maintaining smooth trade relations with global buyers.