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SBP makes it mandatory to bring export proceeds within 120 days

SBP makes it mandatory to bring export proceeds within 120 days

SBP makes it mandatory to bring export proceeds within 120 days

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KARACHI: The State Bank of Pakistan (SBP) has made it mandatory for exporters to bring export proceeds within 120 days of the shipment, a statement said on Wednesday.

With an objective to improve the timely inflow of foreign exchange from exports proceeds in the market, it had amended foreign exchange regulations requiring exporters to bring export proceeds within a maximum period of 120 days from the date of shipment, it added.

Earlier the exporters were required to bring their export proceeds within a maximum period of 180 days. This move also brings in Pakistan’s regulations closer to international best practices.

The SBP in the recent past has introduced a number of policy measures in its foreign exchange regulations to facilitate exporters, as it allowed up to 10 per cent of exporters’ annual exports for equity investment abroad to establish overseas subsidiary/branch office.

It also Allowed exporters who are eligible to retain part of their export proceeds to make payments abroad from their export retention account for a number of additional purposes including marketing and promotions, purchase of design/patterns, warehousing and consultancy service.

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The measures also include facilitating e-commerce by allowing exporters to sell their products directly through their own websites as well as through international digital marketplaces including Amazon, e-Bay, Ali Baba, and also allowing exports by way of dispatch of shipping documents directly to the foreign buyer, to make exporters competitive in the international market.

The newly introduced measure is expected to positively impact foreign exchange inflows in the market, the central bank is of the view that flexible exchange rate has appropriately played its role as a shock-absorber and it is important that its role be complemented by strong exports proceed realisation.

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