The State Bank of Pakistan (SBP) has introduced a structured timeline framework for the realization of export proceeds, a move designed to enhance transparency, financial discipline, and efficiency in foreign trade settlements. Issued under the revised Foreign Exchange Manual, the updated guidelines clarify how and when exporters must bring their foreign earnings back into Pakistan, ensuring that trade inflows support the country’s external sector stability.
Under the new directives, exporters are obligated to repatriate the full value of goods shipped from Pakistan, as declared to customs authorities, within specific timeframes. Typically, the payment must be realized either by the contractual due date agreed with the buyer or within 120 days from the shipment date, whichever comes earlier. These funds must be routed through an Authorized Dealer, in convertible foreign currency or, in certain instances, in Pakistani rupees via a repatriable non-resident account.
For shipments conducted on documents against payment (DP), cash against documents (CAD), or sight basis, the guidelines introduce stricter deadlines. Exporters must secure payment within 45 days of shipment. However, if the sales agreement or an irrevocable letter of credit specifies a 120-day credit period, exporters are granted up to 135 days to realize the proceeds. Any exceptions beyond this framework require formal approval from the SBP’s Exchange Policy Department.
The SBP has also outlined provisions for cases where exporters fail to meet the 120-day deadline. Authorized Dealers are allowed to grant extensions, provided exporters furnish a valid written explanation accompanied by evidence from the foreign buyer. Even so, such extensions cannot surpass the original 120-day period once the overdue status has been reported.
To further facilitate trade financing, the SBP has introduced an exception for exporters who discount or sell their export receivables forward through an Authorized Dealer. In such cases, the timeline for realization extends to 180 days, provided the transaction is executed before shipment or within 14 days following shipment. This option is expected to give exporters additional flexibility in managing cash flows while ensuring compliance with regulatory timelines.
The central bank emphasized that these measures are aimed at streamlining the inflow of foreign exchange, promoting timely realization of export payments, and safeguarding Pakistan’s balance of payments position. With global trade facing increasing challenges, timely repatriation of export proceeds has become critical for sustaining confidence in the country’s financial system and ensuring the smooth availability of foreign exchange reserves.
For exporters, adhering to these timelines is not only a matter of regulatory compliance but also a step toward strengthening relationships with international buyers and maintaining credibility in global markets. The SBP’s updated framework serves as a balancing act between regulatory oversight and flexibility for businesses, aligning trade practices with the evolving dynamics of international commerce.
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