In a significant move aimed at boosting exports and streamlining business operations, the State Bank of Pakistan (SBP) has granted exporters the freedom to utilise their funds held in Exporters’ Special Foreign Currency Accounts (ESFCAs) without the need for prior approval.
The circular issued by the SBP emphasises the government’s commitment to facilitating exporters by providing them with liberal access to dollars for various purposes, including marketing and business-related activities.
“To facilitate the exporters and to promote ease of doing business, the utilisation of the retained funds has been further liberalised,” stated the SBP circular.
The key highlight of this development is that all exporters are now permitted to freely utilise the funds in their ESFCAs for making payments abroad of current account nature without requiring prior approval from the State Bank of Pakistan. This move is expected to remove barriers and enhance the operational flexibility for exporters.
Moreover, the circular specifies that, upon request from exporters, authorised dealers (banks) are now empowered to issue debit cards against the balances held in ESFCAs. This additional flexibility aims to facilitate smoother financial transactions for exporters.
The SBP has issued clear directives to banks, instructing them to communicate these new guidelines to all their constituents to ensure meticulous compliance with the updated regulations.
The limitation on utilising foreign currency funds has often been perceived as a hindrance for exporters looking to expand their businesses internationally. With the recent decision by the SBP, this restriction has been lifted, providing exporters with greater financial autonomy and promoting a more favourable environment for business growth.
This initiative aligns with the government’s broader strategy to foster economic growth and enhance the competitiveness of Pakistani businesses in the global market. As exporters gain increased flexibility in managing their foreign currency funds, it is anticipated that this measure will contribute to a more vibrant and dynamic export landscape in Pakistan.