Exporters can now retain a certain percentage of their export earnings in ESFCAs, as specified by the SBP, which they can utilize for various payments abroad, facilitating their operational needs without the central bank’s pre-approval.
The SBP mandates authorized dealers to provide debit cards linked to ESFCA balances upon request. However, withdrawals in foreign currency from these accounts within Pakistan are prohibited.
The guidelines also clarify that exporters are permitted to use these funds for business-related imports, subject to adherence to prevailing laws, regulations, and the import policy order. Additionally, ESFCA balances can cover payments for capital and financial account transactions, including overseas investments and loan repayments, provided the transaction complies with established regulatory procedures.
Pakistan has recently witnessed a resurgence in export activity, overcoming challenges such as elevated energy costs and a foreign currency shortage impacting raw material imports. January saw exports climb to $2.792 billion, a 24% increase from the previous year, with a 7.87% rise to $17.778 billion in the first seven months of fiscal year 2023-24.
The textile sector, a major contributor, reported a 10% year-on-year increase in exports to $1.45 billion in January, with value-added textile products experiencing a 12% surge. Basic textiles and other textile categories also saw 6% and 3% growth, respectively.
Information technology exports also showed robust performance, reaching $265 million in January, a 39% year-on-year increase, though experiencing a 13% dip from the previous month. This growth is attributed to a stable local currency and the SBP’s decision to limit foreign income retention from 35% to 50% for exporters.
 has allowed exporters to use their Exporters’ Special Foreign Currency Accounts (ESFCAs) for international business payments without prior approval, aiming to boost trade and facilitate business operations){kind=link}