KARACHI, Aug 15: The State Bank of Pakistan criticised banks’ inability to realise export proceeds worth $220 million, which were overdue for less than a year.

SBP Governor Dr Shamshad Akhtar on Friday advised all commercial banks to ensure repatriation of overdue export proceeds.

Addressing a meeting of heads of commercial banks held at the SBP she expressed concern over inability of banks to realise export proceeds within the stipulated period of 180 days.

She recommended that banks should encourage exporters to bring back overdue export proceeds, which are held up for less than a year.

“Banks have to really act fast to ensure realisation of approximately $200 - $220 million of overdue proceeds on which the State Bank staff will be working closely with them.”

The SBP governor underscored the need to devise a mechanism to separate those exporters, who have genuine problems, from those not bringing back export proceeds wilfully.

The State Bank and banks are to conduct analysis of reasons for delays in export proceeds beyond one year and work out linkages between the held-up proceeds and the export refinance.

She said that banks and the State Bank should also develop a database of export proceeds region-wise and customer-wise in order to expedite repatriation of the held-up proceeds.

Representatives of the commercial banks assured the central bank chief that they will make utmost efforts for realisation of export proceeds. They also agreed to have another meeting with the governor SBP after 15 days to report on the progress in this regard.