Ref. No. PHMA/ Cir-021/2023
Dated:06^th March 2023  

SBP FOREIGN EXCHANGE MANUAL, CHAPTER 12, PARA-6,

"METHOD AND PERIOD OF PAYMENT

PHMA invites attention of members towards SBP FE Circular 1 of 2022 dated 5th January 2022 regarding "Method and Period of Payment" and FE Circular 1 of 2023 dated 13th February 2023 regarding "Realization of Export Proceeds".  Whereas, “Para 6, Chapter 12 – Method and Period of Payment is self-explanatory which states that:

    I.        Full export value of goods exported from Pakistan and declared to the Customs authorities should be received in an approved manner, as embodied in State Bank of Pakistan's (SBP) Notification No. F.E. 1/2022-SB dated the January 5, 2022 on the due date for payment or within one hundred and twenty (120) days from the date of shipment, whichever is earlier, or within such period as may be prescribed by SBP through specific or general instruction, through an Authorized Dealer either in convertible foreign currency in which the Authorized Dealer maintains accounts or in Pakistan rupee from a repatriable rupee account of a nonresident. In case of shipment on DP/CAD/ sight basis the payment should be received within 45 days from date of shipment. Prior approval of the Exchange Policy Department, SBP should be obtained before arranging for payment in any manner other than that mentioned above.

  II.        Where the terms of sale provide for payment earlier than 120 days, including DP/CAD/ sight bills, Authorized Dealers may allow extension in the realization period if they are satisfied with the written explanation given for delay in realization by exporter. Such explanation must be supported by documents/ communication from the foreign buyer and the extension must not exceed the period beyond 120 days from the date of shipment. Authorized Dealers shall not allow extension in the realization period, once they have reported the case as overdue to FEOD, SBP-BSC.”

Foregoing in view, in case, export proceeds of any member is delayed or seems to be delayed beyond 45-days are advised to immediately contact their concerned Authorized Dealer for extension of time period (from 45-days upto 120-days) as prescribed in circular mentioned above, for their convenience and to comply with FE Circular 1 of 2023 dated 13th February 2023 regarding "Realization of Export Proceeds", accordingly. 

 Mr. Muhammad Babar Khan     Muhammad Jawed Bilwani       Khizer Mehboob            Naseer Ahmed Butt

 Central Chairman                    Patron In-Chief                       Zonal Chairman SZ       Zonal Chairman NZ