Exporters of fresh fruits and vegetables have issued a strong appeal to the State Bank of Pakistan (SBP), urging it to mandate the automatic availability of Open Account (O/A) export payment facilities across all commercial banks. The request highlights growing frustration within the export community over inconsistent access to O/A facilities, which are permitted under SBP regulations but are still selectively offered by banks.
Arif Muhammad Rana, proprietor of Arif Overseas Traders, emphasized that the lack of uniform O/A support is harming Pakistan's export potential, particularly in the perishable produce sector. "Fresh produce cannot wait for lengthy banking procedures or rigid payment terms," he said. "The absence of standardized O/A support results in shipment delays, product loss, and ultimately a decline in foreign exchange inflows for Pakistan."
© Arif Fruits
While exporters remain responsible for ensuring the repatriation of foreign currency within the prescribed period, many banks continue to deny O/A access due to internal policy constraints. This has discouraged exporters from pursuing or expanding trade with international buyers who prefer open-account payment terms. Rana also noted that the Pakistan Single Window (PSW) platform has made strides in integrating customs, banks, and regulators, but pointed out that the O/A option has yet to be implemented effectively within the system.
Exporters are now calling on the SBP to make the O/A facility a standard requirement for all commercial banks, particularly for registered exporters of perishable goods, regardless of experience level. They propose allowing a payment realization window of 90 to 180 days under O/A terms. Exporters who fail to repatriate funds within this timeframe could face strict penalties, such as the suspension of their CNIC and passport until compliance is achieved. They also urge full integration of the O/A functionality into the PSW and E-Form systems to ensure proper tracking and transparency.
"This is not a privilege, it's a necessity," said Rana. "By making Open Account accessible with accountability, Pakistan can expand its exports, safeguard its exporters, and bring in much-needed foreign exchange."
Pakistan's fresh produce sector holds significant potential to increase export volumes, but this can only be realized if the appropriate financial instruments are made available in a timely and consistent manner. Exporters now look to the State Bank for decisive action that could unlock growth across the sector.
© Arif FruitsFor more information:
Arif Muhammad Rana
Arif Overseas Traders
Tel: +92 300 0555345
Email: [email protected]
