The State Bank has allowed exchange companies to bring in US dollars directly in baggage or in their accounts against the sale of foreign currencies abroad. The permission is being given nearly 10 years after the central bank imposed a ban on dollar import.
“This arrangement shall remain in operation from Aug 3 to Oct 15 unless advised otherwise or until further instructions,” said the State Bank.
The decision is likely to improve dollar supply in the market, reduce dollar demand, bring down difference in dollar rates in open/inter-bank and will bring stability in the exchange rate.
However, the State Bank has made it mandatory to bring dollars only through Jinnah Airport, Karachi.
“Dollar currency notes can be imported only through Jinnah International Airport (JIAP) Karachi. Thus ECs (exchange companies) exporting foreign currencies from Karachi, Lahore or Islamabad airports will bring into Pakistan cash (US dollars) only through JIAP Karachi,” said a State Bank circular issued on Monday.
The State Bank’s circular said the ECs may also continue to export permissible foreign currencies against repatriation of equivalent US dollars in their foreign currency accounts maintained with banks in Pakistan as per existing procedure.
“US dollars must be brought into Pakistan within two working days from the date of export of foreign currencies. The practice of repatriation of USD through credit to bank accounts of EC with banks in Pakistan will remain unchanged,” said the circular.