Connect with us

Hi, what are you looking for?

Online Business Success

SBP revises foreign exchange regulations for exporters


— Reuters/File
— Reuters/File
  • Directs exporters to bring proceeds within 120 days from date of shipment.
  • Aims to improve timely inflow of foreign exchange from exports proceeds.
  • “New measure is expected to positively impact foreign exchange inflows,” SBP says.

In a bid to stabilise the inflow of foreign exchange, the State Bank of Pakistan (SBP) has directed exporters to bring proceeds within 120 days from the date of shipment.

According to a notification issued in this regard, the central bank said: “With an objective to improve the timely inflow of foreign exchange from exports proceeds in the market, SBP has amended foreign exchange regulations requiring exporters to bring export proceeds within a maximum period of 120 days from date of shipment.”

It is worth mentioning that earlier, the exporters were required to bring their export proceeds within a maximum period of 180 days. The central bank noted that this move would also bring Pakistan’s regulations closer to international best practices.

“The new measure is expected to positively impact foreign exchange inflows in the market,” the statement read.

Keeping in view the widening current account and trade deficit, the central bank has been continuously taking measures to facilitate exporters to promote exports of Pakistan.

In the recent past, SBP introduced several policy measures in its foreign exchange regulations in this regard, which include:

Allowing up to 10% of exporters’ annual exports for equity investment abroad to establish overseas subsidiary/branch office

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

Advertisement. Scroll to continue reading.

Facilitating e-commerce by allowing exporters to sell their products directly through their websites as well as through international digital marketplaces including Amazon, e-Bay, Ali Baba and

Allowing exports by way of dispatch of shipping documents directly to the foreign buyer, to make exporters competitive in the international market.

The Pakistani rupee has maintained the downtrend for the past eight months as it has lost 16.07% (or Rs24.47) to date, compared to the 22-month high of Rs152.27 recorded in May 2021.

However, the SBP is of the view that flexible exchange rate has appropriately played its role as a “shock-absorber” and its role must be complemented by strong exports proceed realisation.



Source link

Click to comment

Leave a Reply

Advertisement

Latest

Online Business Success

— Reuters/File Directs exporters to bring proceeds within 120 days from date of shipment. Aims to improve timely inflow of foreign exchange from exports...

Technology

Source: Bryan M. Wolfe / iMore At this year’s Consumer Electronics Show (CES), Nanoleaf has announced plans to allow its key lighting products to...

Online Business Success

Evan Kirstel is a techfluencer with over 500K followers. He specializes in enterprise tech, B2B social media marketing and content creation. getty The pandemic...

Top Stories

The United States Securities and Exchange Commission has postponed its decision to approve NYDIG’s spot exchange-traded fund (ETF) for Bitcoin (BTC), delaying until March...

Technology

In letter: The James Webb Space Telescope has successfully deployed its five-layer, 70-foot sunshield, checking off a critical make-or-break step in the observatory’s multi-phase,...

Loan And Finance

Charles Taylor has announced its acquisition of Underwriters Safety & Claims (US&C), a third-party administrator and managed-care services provider with operations across the US....

Online Business Success

President at BAMS & CRMDialer. Overseeing the growth of payment gateways, e-commerce growth hacks and SMB efficiency improvements. getty Running a business in 2021...

Technology

Hear from CIOs, CTOs, and other C-level and senior execs on data and AI strategies at the Future of Work Summit this January 12,...

Advertisement

You May Also Like

SEO Guide

How to index website on Google? Do you want to drive more organic traffic to your new website? I am sure your answer is...

SEO Guide

There are all kinds of pictures of the world on the internet, but to find one of these specific pictures that you want to...

Blogging

In this post, I will discuss the top ten profitable blogging niches ideas for Adsense approval and high traffic. whether you use Blogger or...

SEO Guide

Want to rank in Google image search? Images that you use as a featured images when writing a post actually appear on Google Images...

Advertisement