All Authorized Dealers
in Foreign Exchange,

Dear Sirs,

EXCHANGE RATE AND PAYMENT OF CASH SUBSIDY

Effective 27th June, 1998 State Bank of Pakistan will undertake purchase and sale of U.S. $ from to the Authorised Dealers at the following rates.

2. As a consequence of the above, the instructions issued vide F.E. Circulars Nos. 12, 17, 25, 26 and 27 of 1998 for payment of cash subsidy by the State Bank of Pakistan are withdrawn with immediate effect.

3. Authorised Dealers may, however, lodge claims for reimbursement of the cash subsidy paid by them to their clients upto the 26th June, 1998 in terms of the F.E. Circulars mentioned in the preceding paragraph with the area offices of the State Bank of Pakistan. It should, however, be noted that no cash subsidy is available on the export bills negotiated / purchased / discounted by the Authorised Dealers before the 24th June, 1998.

4. The conversion of various currencies into Pakistan rupees for the purpose of transfer of funds from Foreign currency accounts to 'National Self Reliance Fund' in terms of F.E. Circular No. 19 of 1998 will henceforth be made at the Authorised Dealers’s T.T. Clean buying rate obtaining on the date of transaction.

5. Other instructions issued vide our above mentioned F.E. Circulars will, however, remain unchanged.