The State Bank of Pakistan (SBP) has rolled back its earlier restrictions on delayed realization of export proceeds, providing long-awaited relief to exporters who had been facing liquidity challenges due to withheld payments. The central bank has now directed authorized dealers to release, without delay, all funds previously held under lien against overdue export bills.
In a circular issued on Tuesday, the SBP instructed authorized dealers (ADs) to ensure that exporters gain prompt access to these funds, a move aimed at easing cash flow constraints in the trade sector. The revised directive marks a significant shift from the earlier policy, which had allowed banks to hold such proceeds pending clearance.
Under the updated guidelines, ADs are required to report all overdue export bills in their fortnightly submissions to the SBP’s Foreign Exchange Operations Department. This change effectively shifts the regulatory approach from restricting access to funds toward improving monitoring and reporting mechanisms. The new framework ensures the central bank can still track overdue payments while allowing exporters to utilize their earnings without unnecessary delays.
The directive, which takes effect immediately, is expected to have a positive impact on the export sector, particularly for businesses relying on steady cash flow to meet operational expenses and fulfill new orders. Industry observers believe the decision will also help rebuild trust between exporters and the banking system, especially in the wake of concerns over the previous holding mechanism.
The SBP’s move comes at a time when Pakistan’s export sector is under pressure from fluctuating global demand, logistical challenges, and rising input costs. For many exporters, quick access to foreign proceeds is essential not only to sustain operations but also to maintain competitiveness in international markets.
By eliminating the lien on delayed payments, the central bank is signaling a shift toward facilitating trade and reducing administrative bottlenecks. While overdue bills will still be monitored closely, exporters will now have the liquidity they need to reinvest in production, manage working capital, and expand their outreach.
The SBP has also emphasized the importance of clear communication, directing authorized dealers to inform all relevant stakeholders about the updated policy. This ensures that exporters across different sectors are aware of the immediate availability of their withheld proceeds and can plan accordingly.
Analysts note that the policy adjustment aligns with broader economic objectives, including supporting Pakistan’s foreign exchange inflows, improving ease of doing business, and fostering a more export-friendly banking environment. The central bank’s decision is seen as part of its ongoing efforts to balance regulatory oversight with economic facilitation.
With the implementation now in effect, the business community will be watching closely to see whether the change results in improved export performance and greater confidence in the financial system’s support for trade.