Getting paid for an export is not just about the buyer sending money. In Pakistan, export proceeds must flow through the formal banking system and be matched to your export records. Understanding the process helps you avoid delays, charges, and compliance problems.
Export Proceeds Come Through Banks
Export proceeds must be received through authorised dealer banks and linked to your export. For each shipment, your bank processes an electronic export form through the Pakistan Single Window, recording the expected value and payment terms. When payment arrives, the bank matches it to that form. See Pakistan Single Window guide.
Realisation of Proceeds
The State Bank of Pakistan sets rules on how long exporters have to bring export proceeds into Pakistan after shipment, and on what happens if payment is delayed. Time limits and procedures for extensions have been revised over the years, so ask your bank for the current rules that apply to your shipment and payment terms. Delayed or unrealised proceeds can lead to regulatory follow-up, so keep your bank informed of any buyer delays.
How International Transfers Work
Most export payments arrive by international wire transfer through the SWIFT network. Often, the payment passes through one or more correspondent banks before reaching your bank. Each bank in the chain may deduct fees.
Who Pays the Charges?
Transfer instructions typically use one of three options:
- OUR: the sender pays all charges — you receive the full amount
- SHA: charges are shared — the sender pays their bank's fees, and you pay receiving and sometimes intermediary fees
- BEN: the beneficiary (you) pays all charges
Agree in your contract that the buyer pays their bank's charges and ideally intermediary charges, so you receive the full invoice amount.
💡 Give buyers complete bank details
Provide your account title, IBAN, bank name, branch address, and SWIFT/BIC code on your proforma invoice. Incomplete details cause payments to be delayed or returned — and confirm by phone that buyers have the correct details. See our guide on avoiding export payment fraud.
Foreign Currency Retention
Under SBP rules, exporters may be allowed to retain a portion of export proceeds in foreign currency accounts, for example to pay for imported inputs. The eligible share and conditions have changed over time — ask your bank about current arrangements.
Common Causes of Payment Delays
- Incorrect bank details on the buyer's side
- Payments received without clear reference to the invoice or export form
- Payments from a party other than the buyer, which require explanation
- Discrepancies under letters of credit — see letter of credit explained
- Compliance checks on the transaction, especially with new markets or unusual payment routes
Payments From Third Parties
Payments should normally come from the buyer named on your export documents. Payments from other parties can trigger compliance checks and may not be accepted without justification. Discuss any such arrangement with your bank in advance.
Partial Payments and Deposits
Advance payments and deposits received before shipment must also be handled correctly with your bank and linked to the subsequent export. Tell your bank when you receive an advance so it is recorded properly.
Keep Records
For each shipment, keep the export form reference, GD, invoice, bill of lading, and bank payment confirmations together. You will need them for reconciliation, tax, and any queries from your bank.
Frequently Asked Questions
How do exporters in Pakistan receive payments?
Through authorised dealer banks, usually by international wire transfer, with each payment matched to the electronic export form processed through the Pakistan Single Window.
How long do exporters have to bring proceeds into Pakistan?
The State Bank of Pakistan sets time limits and extension procedures, which have changed over time. Ask your bank for the current rules.
Why did I receive less than my invoice amount?
Correspondent and receiving bank charges may have been deducted, depending on the charge option used. Agree that the buyer pays charges and use the OUR option where possible.
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