Pakistan Today

SBP moves to regulate exports to and via Afghanistan to CARs

In view of peculiar nature of trade with Afghanistan, the central bank Friday asked the authorized dealers to accept the cash convertible currencies brought over their counter by the exporters and convert the same at the prevailing buying rate applicable for normal export proceeds for credit to the PKR account of the exporter. Further, the regulator said the banks will ensure that the said proceeds are backed by proper export documents as per prescribed procedure and terms & conditions issued from time to time “Attention of Authorized Dealers is invited to EPD Circular Letter No. 03 dated March 12, 2002 on the subject containing therewith SRO No. 137(1)/2002 dated March 7, 2002 issued by the Ministry of Commerce, Government of Pakistan,” said an SBP circular issued Friday. In this regard, the bank said, it is clarified that as per FE Regulations, the export made against convertible currencies is subject to Form ‘E’ certification by the Authorized Dealers. Accordingly, the export proceeds received as per sales terms are required to be surrendered in the inter-bank market for which the concerned Authorized Dealer will issue Proceeds Realization Certificate (PRC) at the prevailing buying exchange rate and credit the equivalent rupees in the PKR account of the concerned exporter.

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