RIZWAN BHATTI

KARACHI: The State Bank of Pakistan (SBP) has restricted cash US dollar import by Exchange Companies (ECs) at 35 percent of total export of permissible foreign currencies in a month.

Previously, there were no limitations on cash import of US dollar and exchange companies were importing US Dollars against export of permissible foreign currencies in shape of cash or directly in their foreign currency accounts maintained with banks in Pakistan without any restrictions.

Until July 2015, ECs were permitted to export permissible foreign currencies against repatriation of equivalent US dollars in their foreign currency accounts maintained with banks in Pakistan. However on request of exchange companies, SBP as on July 25, 2015 allowed ECs for import of cash US dollars against export of permissible foreign currencies.

Initially, ECs were allowed to import cash import US dollar against export of permissible foreign currencies without any limit and the facility was announced for 75 days and later several extensions were granted.

Now, the SBP has decided to grant extension without any timeframe with restricted cash import of US dollar.

According to EPD Circular Letter No. 01 of 2018 issued on Monday, as the last extension of cash US dollar import was expired on December 31, 2017, it has been decided that Exchange Companies can continue to import cash US Dollars against export of permissible foreign currencies unless advised otherwise.

However, as per new directives, ECs have been asked that total import of cash US dollars should not exceed 35 percent of total export of permissible foreign currencies during a month.

ECs major part of US dollar import was in the shape of cash. Therefore, in order to further streamline the import of US dollar, SBP has decided to limit the cash import at 35 percent. Now ECs are required to import the remaining 65 percent US dollar against export of permissible foreign currencies in their foreign currency accounts maintained with banks in Pakistan.

SBP said that all other terms and conditions on the subject will remain unchanged and failure to comply with the above instructions will attract a strict regulatory action under related rules & regulations.

As per procedure cash US dollars must be brought into Pakistan within two working days from the date of export of foreign currencies. The practice of repatriation of USD through credit to bank accounts of ECs with banks in Pakistan will remain unchanged.

In addition, representatives of ECs will be required to declare the import consignment of cash US Dollars, upon their arrival into Pakistan, to the SBP staff at SBP Booth located at airport along with original deal ticket of foreign bank/exchange company clearly showing the amount of cash USD.