The State Bank of Pakistan (SBP) has scrapped its lien policy on late export proceeds, offering much-needed relief to exporters, particularly in the rice sector. The reversal, laid out in a circular issued on August 12, overturns a contentious fee structure that penalized exporters for delayed payment realization.
Previously, exporters faced punitive liens equal to 3 percent for shipments delayed up to 30 days, 6 percent for delays of 31 to 60 days, and 9 percent for delays exceeding 60 days. The circular also required banks to seize these amounts through Authorized Dealers (ADs) and report overdue bills to the SBP’s Foreign Exchange Operations Department (FEOD).
Now, exporters can receive the full value of their export proceeds immediately, regardless of delay. The SBP also directed ADs to release all funds currently held under lien and instructed them to submit updated reports on delayed export payments on a fortnightly basis.
A delegation from the Rice Exporters Association of Pakistan (REAP), led by Senior Vice Chairman Jawed Jillani, met SBP Governor Jameel Ahmed to highlight the financial strain caused by the liens, particularly given uncontrollable shipping delays. Governors acknowledged the issue and ordered the removal of penalties to help exporters operate without fear of automatic deductions.
This lien policy change means improved cash flow as full proceeds now return to exporters, easing working capital constraints. It also enhances export competitiveness by providing immediate liquidity to support timely shipments and expansion efforts. Additionally, the move ensures a smoother process with fortnightly automated reporting, promoting transparency and faster compliance checks.