Importers within the Payment System Whom Use ADs: State Bank of Pakistan Modifies Agreement for Transactions Payments
WHAT'S UP? KARACHI'S BUSINESS SCENE JUST GOT A LITTLE MORE COMPLICATED, HUH?
The ol' State Bank of Pakistan (SBP) — y'know, the financial powerhouse regulating Pakistan's currency — has lit a fire under its chair and is cooking up some updates to the way exporters get their cheddar.
Listen up, entrepreneurs: if you're shipping your goods outside the country, you'll need to play along with the SBP's revamped game. These changes are gonna bump you into using Pakistan Single Window (PSW) system, instead of the ol' Electronic Form-E (EFE) that y'all were used to.
The SBP's decision to overhaul the Undertaking/Declaration is down to evolving business dynamics and a system upgrade. Now that the rules have changed, it's time to learn the new ropes, son.
Speaking of which, the SBP's authorized dealers have been told to request the revamped Undertaking/Declaration from exporters right when they kick off their transactions through the PSW system. They ain't just stoppin' there, either; to keep things on the straight and narrow, they're gonna need a wet signature on the form as well.
But don't be thinkin' that these changes are just for chuckles. An incorrect declaration can land you a load of trouble under ole' Pakistan Penal Code 1860, Foreign Exchange Regulation Act, 1947, Customs Act 1969, and Anti-Money Laundering Act 2010. Better make sure you dot those i's and cross those t's, pal.
Here's the revised Undertaking/Declaration you'll need to sign:
- Alright, buddy, here it goes: I declare that I am the seller/consignor/exporter of these goods and that all the details provided in the Financial Instruments are legit and the invoice value stated is the full value of the contracted goods.
- I promise I'll send the foreign exchange proceeds from the export to the authorized dealer by the agreed date, or within the timeframe stipulated by the SBP, after the shipment/dispatch, whichever comes first.
- If it's consignment sale, I'll provide the authorized dealer with a fully documented account sale, certified by the consignees or the Chamber of Commerce of the recipient country, or whatever else the SBP requires.
- I declare that I ain't omitting or suppressing any important information that could affect this declaration, and whatever I tell you is true to my knowledge and belief.
- I'll submit the necessary documents to negotiate/send on collection within 14 days of the shipment.
- I hereby authorize the SBP to share my overdue information with authorized dealers and banks, so they can do their regulatory due diligence regarding my export activities. I also permit them to access my outstanding overdue information available on the Exporter's Information Portal (EIP) maintained by SBP.
Now that y'all know what's good, shape up, yo. 'Cause failure to comply with these new deets can bring down some heavy penalties.
Copyright Business Recorder, 2025.
- Complying with the SBP's updated rules for export transactions carries a significant value for businesses, as it ensures that exporters follow the correct procedures and adhere to the law, reducing the risk of penalties.
- In the ever-changing landscape of finance and business, understanding and mitigating risk is vital for exporters when navigating the new Undertaking/Declaration process as mandated by the State Bank of Pakistan (SBP), to avoid potential implications under various Pakistan statutes.
