State Bank of Pakistan

All Authorized Dealers
In Foreign Exchange,

Dear Sirs,

AUTHORIZED MONEY CHANGERS

Attention of Authorized Dealers is invited to F.E. Circular No. 142 dated the 6^th October, 1991 read with F.E. Circulars No. 50 of 1992 and No. 58 of 1994 which contain detailed instructions for grant / renewal of the Authorized Money Changer’s licenses.

2. It has been decided to revise some of the terms and conditions for grant of the Authorized Money Changer’s license.

The application processing fee and the annual renewal fee has been raised from (a) Rs.10,000/- to Rs.50,000/- and (b) from Rs.1,000/- to Rs.10,000/- per annum respectively.
In case of the company, the paid up capital should not be less than rupees one million and in case of individual or partnership firm, the net-worth should not be less than half million rupees as per the wealth statement filed with the Income Tax Department.
The license will be issued to only those Pakistani nationals / firms and companies who are paying income tax.
Tax defaulter will not be eligible for grant of license.
The license will not be issued to persons involved in illegal activities as per police report.

3. Other terms and conditions for grant of Authorized Money Changer’s License as embodied in the F.E. Circulars mentioned in paragraph 1 of this circular will remain unchanged.

4. The changes envisaged in Para 2 above shall become applicable to the applications for grant/renewal of the licenses received in State Bank of Pakistan Offices on or after the date of issue of this circular.

5. Consequently, the following amendments may be made in paragraph 6, Chapter II of Exchange Control Manual (7^th Edition, 1992):-

The figures of ‘Rs. 10,000.00’ and ‘Rs.1,000.00’ appearing in paragraph 6 (i) may be changed to ‘Rs.50,000.00’ and ‘Rs.10,000’ respectively. Further, the last sentence of this sub-para may be replaced by the following:-

"The applications for renewal of the licenses will be made within 7 days of expiry of the license. In case application for renewal is not made within the above time limit the relative license shall be treated to have lapsed and the concerned party will be required to obtain fresh license on payment of prescribed fee."

Para 6 (ii) may be replaced by the following ;-

"The Paid up capital in case of a company should not be less than Rs. 1,000,000.00 as per audited accounts of the company and in case of individual /partnership firm, the net worth should not be less than RS 500,000.00 as per the wealth statement filed with the Income Tax Department.

At the end of sub-para (iii) of Paragraph 6 the words "who are paying income tax" may be added after removing full stop.
Following sub-paras may be added in Paragraph 6:-

Tax defaulters will not be eligible for grant of licences.

The licences will not be issued to persons involved in illegal activities as per police report.

6. Please bring the above to the notice of your constituents.