All Authorised Dealers
in Foreign Exchange,

Dear Sirs,

REALISATION OF COST OF GOODS
EXPORTED FROM PAKISTAN

As authorized Dealers are aware, the value of goods exported from Pakistan is required to be realized from the overseas buyers in foreign exchange to be remitted to Pakistan through normal banking channel. Such payments can also be made out of foreign currency accounts maintained by the buyers with Authorized Dealers in Pakistan provided such accounts are fed by remittances received from abroad through banking channel. These instructions, however, don’t apply to the exports made to the countries with which Pakistan has Special Payments Arrangements e.g. Asian Clearing Union etc.

2. Enquiries have been received whether payment for goods exported from Pakistan can be made from foreign currency account of a person other than the overseas buyer, maintained with an Authorized Dealer in Pakistan. Government of Pakistan have decided that payment for goods exported to countries, other than those with which Pakistan has special payment arrangements (viz. ACU) may also be accepted from any foreign currency account maintained with a bank in Pakistan including an account maintained by the exporter himself and irrespective of the sources of funds in such accounts.

3. The instructions with respect to reporting of transaction first on Schedule 'E-4' as payment to the account holder and simultaneously on Schedule 'A-1' / Schedule 'A-2' on account of export proceeds will continue to be observed.