KARACHI - In order to encourage prompt financial inflows into the country, the State Bank has asked the "Authorized Dealers" to ensure repatriation of export proceeds on due date. The delay and overdue in repatriation of export proceeds has become a great cause of concern for the central bank as concerned dealers has advised to launch an immediate campaign for bringing back earned and invested money into the country to increase national exchequer. It is important to note that State Bank did not mention the overdue amount of export proceeds. According to a circular issued by SBP here on Friday, it has been observed that despite State Bank's clear instructions, a substantial amount of export proceeds are overdue which has been viewed seriously. Since, in terms of related instructions and undertaking on 'E'- Form, Authorized Dealers are further directed to submit an issuance of this letter along with progress report within a week in this respect. The commercial and manufacturing exporters are holding back their export proceeds abroad with the aim to get better exchange rate as the rupee is showing vulnerability against the US dollar and other major currencies, The Nation learnt. Since the last week the dollar-rupee exchange rate had set a new record and edged up to over 73 rupees on July, 08, 2008 (Tuesday) amid speculations that the rupee would shed more value against the US currency because of negative economic developments and political uncertainty. Capital market sources told The Nation that with devaluation of Pak rupee exchange rate against the US dollar, the exporters were creating "standstill" position for export transactions for the unlimited period until unless the Pak exchange rate was not stabilized against the US dollar thus they were not bringing trade related inflows into the country to earn huge profit margins on each sell-abroad consignment. However, the representative of the Port Qasim Association of Trade & Industry told The Nation that the central bank should have controlled the flight of capital rather than to blame exporters for creating worst-case financial scenario. Citing an international rating study titled "Investment in Dubai", Pakistan stood at 4th position, out of other crisis-like situation facing countries. Over a last few months around 30 billion US dollars has been shifted to Dubai from Pakistan, he said, adding the rate of reported flight of money is increasing at an alarming rate. He said, even the exporters who prima-facie would get more Pakistani rupees for a dollar but at the end of the day they would be paying more on the factors of production namely raw materials, parts of machinery and equipment, packing materials. Hence, the benefits of the additional conversion would be nullified due to rapid increase in transportation cost, prices of petroleum and by products such as chemicals, polyesters and synthetics. It is pertinent to mention here that after taking strict measures making amendments in foreign exchange regulations by SBP, the domestic money market gained exchange rate momentum against the US dollar including other foreign currencies. In order to rescue the national currency from free falling, the SBP suspended forward booking against all types of imports; SBP would provide foreign exchange to the dealers for the import of all categories of Furnace oil etc. The import trader said, the weakening of the rupee has created more problems for the importers of goods, machinery, raw materials, equipments and services as they are paying more for the value of the goods and not only that the import duties, taxes and charges all are increased due to the rate of conversion in terms of dollars.