The State Bank of Pakistan (SBP) has granted a one-year extension to Exchange Companies (ECs) for the import of cash US dollars, allowing them to bring in up to 50 percent of the value of their export of permissible foreign currencies through reputable cargo or security companies.Â
“In order to ensure an adequate supply of cash USD in the open market, the validity of the import of cash dollars is hereby extended till June 30, 2025,” stated the circular issued by the SBP.Â
The SBP clarified that all other terms and conditions of this facility remain unchanged.
Initially, ECs were only allowed to export foreign currencies, excluding US dollars, through cargo or security services and repatriate an equivalent amount of US dollars into their foreign currency accounts within five working days of the export.Â
However, to facilitate ECs, the SBP revised the Exchange Companies Manual (ECM) in July last year, permitting the import of cash US dollars against export consignments.
As of July 25, 2023, ECs were allowed to import US dollars for up to 50 percent of their export value, with a five-working-day window for the import process.Â
This facility was initially provided for five months, ending on December 31, 2023, with the condition that the total cash US dollars imported by any exchange company would not exceed half of the value of its export consignments.
In March 2024, the SBP granted a six-month extension for the same import facility, extending it until June 30, 2024.Â
Exchange Companies are required to give prior written notice to the Director of the Foreign Exchange Operations Department (FEOD) at the SBP Banking Services Corporation (SBP-BSC), Karachi, whenever they intend to import cash US dollars through their cargo or security companies.Â
The imported consignment will be verified following the procedures established for foreign currency exports. Once verified, the consignment will be repackaged, sealed, and handed over to the respective cargo or security company for delivery to the exchange company.
