SBP Directs Exchange Companies to Seek Prior Approval for Export of Dollars

The State Bank of Pakistan (SBP) on Tuesday directed exchange companies (ECs) to seek its prior approval before the export of US dollars (USD) on a consignment basis.

Last month, the SBP had allowed exchange companies to export USD current notes on a consignment basis through cargo/security companies to divert the flow of foreign exchange mobilized by them towards the interbank market.

However, now the central bank has directed ECs to seek prior approval from SBP for such export of USD current notes, effective September 7.

In its notification, the SBP further advised ECs to ensure “meticulous compliance with these instructions.” The central bank warned that any violation of these instructions may attract enforcement action under the relevant provisions of the Foreign Exchange Regulations Act, 1947.