Exporters ordered to report product in 120 days – Journal
KARACHI: The State Bank of Pakistan (SBP) now requires exporters to bring revenue back to the country within 120 days instead of 180 days – a move exporters find unworkable.
In a statement released on Wednesday, the SBP said it had amended foreign exchange regulations under which exporters would be required to report receipts into the country within a maximum of 120 days from the date of shipment. Previously, exporters were required to report their products within 180 days.
“The new measure is expected to have a positive impact on foreign currency inflows into the market,” the SBP said, adding that “a flexible exchange rate has played its role as a shock absorber and it is important that its role is completed. through strong exports to proceed with realization This move has brought Pakistani regulations closer to international best practices, he said.
However, exporters say the new limit is not applicable. âExporters make agreements with importers on various payment methods. It can be cash, prepayments and sometimes in the form of loans or late payments, âsaid Jawed Bilwani, president of the Pakistan Apparel Forum.
He said the decision was announced without involving the exporters.
The government and the State Bank have stepped up efforts to hold foreign currencies firmly in their hands in the face of a large import bill and current account deficit. Several measures have been taken during the current fiscal year to restrict the outflow of dollars from the country.
In its statement, the SBP recalled that it had also recently introduced a number of policy measures in its foreign exchange regulations to facilitate exporters.
These measures include allowing up to 10% of annual exports of exporters for overseas investment purposes to establish an overseas subsidiary / branch, and exporters who have the right to withhold part of their export earnings to make payments abroad from their export withholding account for a period number of additional goals.
The SBP said it has also facilitated e-commerce by allowing exporters to sell their products directly through their own websites as well as through international digital marketplaces like Amazon, e-Bay, Alibaba, and authorized exports through the ‘sending shipping documents directly. to the foreign buyer to make the exporters competitive in the international market.
Posted in Dawn, January 6, 2022