How to handle multi-currency accounting for import/export businesses in Pakistan
If your business imports from China or exports to the Middle East, you need to handle foreign currency properly. Here is how to do it in a Pakistan-compliant way.
The challenge of foreign currency in Pakistani accounting
When you import goods from China and pay in USD, then sell those goods in Pakistan for PKR, you need to account for the exchange rate at multiple points: when you record the payable, when you actually pay, and at year-end when exchange rates may have moved. The difference is a foreign exchange gain or loss.
Recording foreign currency transactions
When you receive an invoice from a foreign supplier for USD 10,000 and the rate is ₨280/USD, you record the payable at ₨2,800,000. When you pay 30 days later and the rate has moved to ₨285/USD, you pay ₨2,850,000. The ₨50,000 difference is a foreign exchange loss — a real expense that affects your profit.
State Bank of Pakistan requirements
Foreign currency transactions in Pakistan must comply with State Bank of Pakistan (SBP) regulations. Import payments above certain thresholds require Form I (import form), and export proceeds must be repatriated within specified timeframes. Your accounting records must reflect these transactions accurately for SBP and FBR purposes.
Multi-currency bank accounts
Pakistani businesses involved in international trade often maintain USD, EUR, or AED accounts at authorised foreign exchange dealers or commercial banks. Each foreign currency account needs to be maintained separately in your books and translated to PKR for reporting purposes.
Multi-currency in FinanceOS
FinanceOS supports up to 10 foreign currencies on the Growth plan and unlimited on Enterprise. Exchange rates are updated daily from live market feeds. When you record a foreign currency transaction, the PKR equivalent is calculated automatically at the current rate. Foreign exchange gains and losses are posted to a dedicated ledger account. Year-end currency revaluation is handled automatically.
Ready to automate your accounting?
Start your free 14-day trial — no credit card required.