In a notice released on the same day, the State Bank of Pakistan (SBP) stated that Exchange Companies (EC) may, on a need-basis, import cash US Dollars against the value of their export consignments of permitted foreign currencies within five working days, through reputable cargo/security companies.
This agreement will be in effect until December 31, 2023, according to the announcement.
“It will be subject to the condition that total cash US Dollars imported by an Exchange Company during this period shall not exceed 50% of the value of its export consignments,” the notice reads
Rules Defined by SBP for Foreign Exchange Companies
It is important to note that the EC was permitted to export legal foreign currencies other than US dollars through cargo and security firms and repatriate equivalent US dollars in their accounts held with Pakistani banks within five working days of the date of export of foreign currencies.
With the aforementioned improvement, however, money can now be brought in via freight or security firms.
The notice further states that Exchange Companies must give written notice to the Director of the Foreign Exchange Operations Department (FEOD) at SBP Banking Services Corporation (SBP-BSC), Karachi, and copy the same to the SBP-BSC staff at SBP-Customs Joint Booth at the designated airports when importing US Dollars Cash through their cargo/security companies.
Along with Annexure 8, they will also present the actual deal ticket from the foreign bank or exchange company, which will clearly reflect the amount of imported US currency. After verification, SBP-BSC authorities will sign and stamp the deal ticket at the booth.
The SBP-Customs Joint Booth must also receive original export paperwork issued by the foreign government, which SBP-BSC officials will also stamp.
A copy of these signed and stamped documents will be kept by the exchange company for on-site inspection by the State Bank inspection team.
“The import consignment shall be verified as per procedure laid down for export of foreign currencies,” notice reads.
Once everything has been checked, the shipment must be repackaged, sealed, and given to the cargo/security firm for delivery to the exchange company.
It was also emphasized that the ECs must abide by all applicable laws and rules, including those of the country from which US Dollars in cash are being imported.
“Exchange Companies shall ensure that all transactions related to the import of cash shall be properly reflected in their books of accounts,” it further reads.
As a result, the SBP has established Annexure-8, a declaration form that must be turned in to the SBP booth in the airport arrivals lounge and lists the imported US dollars that have to be presented for counting and inspection before clearance. Additionally, changes have been made to Annexures 5 and 9.
To read our blog on “Govt. is not considering any foreign exchange amnesty schemes; says ministry,” click here.
