Businessmen demands restoration of 180 days period for export proceeds realisation

KARACHI: The business community has demanded the State Bank of Pakistan (SBP) to restore the 180 days period for realisation of export proceeds, a statement said on Friday.

On January 5, 2022, the SBP amended the foreign exchange manual to reduce the number of days from 180 to 120 for the realisation of the export proceeds.

Employers’ Federation of Pakistan (EFP) president Ismail Suttar was disappointed by the central bank’s decision to run amok in their foreign exchange regulations without considering the repercussions of implementation.

In a statement, the EFP president said the State Bank had very recently announced a policy, which requires the exporters to bring back foreign proceeds in a maximum of 120 days in contrast to a 180-day policy previously, on the basis that such initiatives will help smooth out cash inflows in the country.

But apparently, one cannot begin to argue the ignorance of barrier, this policy imposes on the exports of the already backlashed economy of Pakistan.

He said considering the ever-increasing inflation rate at 10.74 per cent, the exchange rates at $1 equal to Rs176.83 and the balance of trade deficit at $5.11 billion, all could agree that exports were the strategically practical way out.

It is a well-known fact that one should focus on and make the maneuvers of exports easier in contrast to more restricted, volatile and unfeasible for the country.

“[The] EFP adheres to the belief that the restriction of the foreign exchange policy, in this regard, will be an unwanted repercussion for the economy of Pakistan, ultimately decelerating the export growth of the country,” he said, adding that a simple deliberation on the matter, can lead to realise that the central bank’s action to afore the export proceeds might prove to be something quite opposite to the advantage expected since a drastic decrease in the dates so suddenly might bring Pakistan closer to the norm internationally but it will be equivalent to jumping too many step at once.

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