KARACHI: The central bank has updated its instructions for foreign exchange companies for importing US dollars, allowing them to import cash dollars against the value of their export consignments of permissible foreign currencies within five working days through reputed cargo or security companies.

The State Bank of Pakistan (SBP) has updated these terms by adding a paragraph — titled ‘Import of Cash US Dollars through Cargo/Security Comp­anies’ — to Chapter 5 of the Exchange Companies Manual.

It said that this arrangement would initially be in place until Dec 31, 2023, and would be subject to the condition that total cash dollars imported by an exchange company during this period shall not exceed 50 per cent of the value of its export consignments.

It said the exchange companies should include such an arrangement in their deal with the overseas entity. The system-generated deal ticket shall also include particulars of the amount to be imported as cash dollars, if any, out of the total export consignment.

“Exchange companies, at the time of import of US dollars in cash through their cargo/security companies, shall give prior written intimation to the Director of Foreign Exchange Operations Depar­tment, SBP Banking Services Corporation, Karachi, and copy the same to the SBP-BSC staff at SBP-Customs Joint Booth at designated airports,” it said.

“They will also provide original deal ticket of foreign bank/exchange company clearly showing the amount of cash US Dollars imported, along with Annexure-8, which shall be signed and stamped by SBP-BSC officials at the booth after verification,” the new paragraph said.

Besides, the foreign government’s customs and/or other export documents in original must also be submitted at SBP-Customs joint booth, which shall also be stamped by SBP-BSC officials.

A copy of these signed and stamped documents must be kept in the record by the exchange company for on-site inspection by the State Bank’s inspection team.

Published in Dawn, July 26th, 2023