SBP Withdraws Lien Policy on Delayed Export Proceeds, Easing Pressure on Exporters
In a major relief for Pakistan’s export community—especially rice exporters—the State Bank of Pakistan (SBP) has withdrawn its policy that imposed a lien on delayed export proceeds. This move reverses the measures introduced under FE Circular No. 02 dated March 31, 2023, and is expected to improve exporters’ cash flows.
The now-cancelled policy had required exporters to face financial liens of 3% for payment delays up to 30 days, 6% for delays of 31–60 days, and 9% for delays exceeding 60 days. These measures were initially aimed at ensuring the timely inflow of export earnings into the country.
Previously, the SBP had given exporters until April 30, 2023, to bring delayed proceeds without deductions. After this deadline, Authorized Dealers (ADs) were instructed to impose liens, report the cases to the Foreign Exchange Operations Department (FEOD), and deposit fines determined by the Foreign Exchange Adjudication Department.
With the latest decision, the SBP has directed all ADs to immediately release amounts held under lien. Moving forward, banks will continue to submit fortnightly reports of overdue export bills to the FEOD via Appendix-V20 and Appendix-V21. The Foreign Exchange Manual has also been updated to reflect this change.
This policy reversal follows a meeting between SBP Governor Jameel Ahmed and a delegation from the Rice Exporters Association of Pakistan (REAP), led by Senior Vice Chairman Jawed Jillani. The delegation highlighted the challenges exporters face—such as delays in realizing payments due to extended shipping transit times beyond their control—and requested the waiver of penalties.
Governor Ahmed responded positively, instructing the immediate removal of penalties and reaffirming SBP’s commitment to supporting the export sector. He was also invited to visit the REAP House in Karachi to meet industry leaders.
During the meeting, exporters also raised concerns about high foreign exchange rates charged by shipping companies, reportedly Rs. 10–12 above interbank rates. The Governor asked REAP to submit a formal complaint with evidence.
Another issue discussed was the unavailability of the Export Refinance Facility (ERF) from certain banks. The Governor assured the delegation that ERF limits were sufficient and urged them to report any refusals. Additionally, the SBP confirmed ongoing efforts to help exporters recover long-pending funds stuck in Lebanon.
This decision is expected to boost exporter confidence and ease financial constraints, helping Pakistan’s trade sector remain competitive in global markets.
