The State Bank of Pakistan (SBP) has permitted exchange companies to import cash US Dollars on a need-to-know basis, up to the value of their export consignments of legal foreign currencies, within five working days, via reputable cargo/security companies.
According to the SBP circular, this arrangement will initially be in force until December 31, 2023, and will be subject to the condition that total cash US Dollars imported by an exchange business during this period do not exceed 50% of the value of its export consignments.
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Such arrangements must be included in the exchange businesses’ transactions with the overseas entity. The system-generated deal ticket must additionally indicate the amount to be imported in cash US dollars.
When importing US dollars through cargo/security companies, exchange companies must notify the Director, Foreign Exchange Operations Department (FEOD), SBP Banking Services Corporation (SBP-BSC), Karachi, and copy the same to the SBP-BSC staff at the SBP-Customs Joint Booth at the designated airports.
They will also present an authentic deal ticket from a foreign bank/exchange company indicating the amount of cash US Dollars imported, which will be signed and stamped by SBP-BSC personnel at the booth following verification.
Foreign government customs and/or other export paperwork must be submitted in original at the SBP-Customs Joint Booth and stamped by SBP-BSC officials.
The import consignment must be verified in accordance with the procedure established for the export of foreign currencies. Following verification, the consignment will be repackaged, sealed, and turned over to the cargo/security firm for transportation to the exchange company.
Exchange businesses must ensure that all relevant laws and regulations, including those of the jurisdiction from which US dollars are imported, are followed.
Exchange businesses must guarantee that all cash import transactions are appropriately reported in their books of accounts.
It is worth noting that exchange companies are already permitted to export permissible foreign currencies other than US dollars through cargo/security companies and repatriate equivalent US dollars into foreign currency accounts maintained with banks in Pakistan within five working days of the date of export.
