All Authorised Dealers
in Foreign Exchange,

Dear Sirs,

ACCOUNTS OF DIPLOMATIC MISSIONS,
INTERNATIONAL ORGANISATIONS ETC.

Attention of Authorized Dealers is invited to the instructions issued vide FE circular No. 18 dated July 5, 1999 and FE circular No. 19 dated July 8, 1999 on the captioned subject. The government has since decided to allow the diplomatic officers and home based members of the missions’ staff in Pakistan and the expatriate employees of international organizations, to make withdrawals in the shape of foreign currency notes from their foreign currency accounts opened in accordance with the instructions issued vide FE circular No. 19 of 1999. Without any restriction. However, the existing restriction on withdrawals in the shape of foreign currency notes from the official accounts of diplomatic missions and international organizations will remain in force. It is further clarified that the special foreign currency accounts opened in terms of FE circular No.19 of July 8, 1999 can be used by diplomatic missions for making payment to the diplomatic officers and home based members of the missions staff and by the international organizations for making payment to their expatriate employees in foreign currency or for credit to a convertible rupee account.

     2.In order to make a provision in the Foreign Exchange Manual for the instructions issued vide

FE circular No. 19 of 1999, as amended above, paragraph 8 of chapter XVI is renumbered as 8(I) and paragraph 8(ii) is added as annexed.

Annexure to FE 21/99

(II) In addition to the above, the Diplomatic Missions accredited to Pakistan and International Organizations in Pakistan are permitted to maintain special Foreign Currency Accounts for the purpose of receiving funds from abroad. Receipts into these accounts will not be required to be surrendered by the Authorized Dealers to the State Bank and the Authorized Dealers may retain such balances in their Nostro accounts in addition to their trading Nostro limits. Such balances shall, however, be reported in columns 10 and 11 of the "Statement of Foreign Currency Balances Held Abroad" in the proforma prescribed at page 5 of Appendix V of the Manual. The special foreign currency accounts may be used for remittances abroad through normal banking channels, issuance of foreign currency denominated travelers cheques, payment to a special foreign currency account of a diplomatic officer/home based members of their staff/expatriate employee of an international organization in Pakistan and for payment to a Duty Free Shop/Bonded Ware-house in Pakistan. Withdrawals in the shape of foreign currency notes from the official accounts of diplomatic missions and international organizations will be allowed only for the purpose of travel abroad. Subject to a maximum limit of $ 5000 (or equivalent thereof in other currencies) per person per visit. There will, however, be no restriction on withdrawal of foreign currency notes by Diplomatic Officers, their home based staff and expatriate employees of international organizations. Conversion of amounts from such accounts into Pak rupees shall be done only through the interbank market and the rupee amounts so converted may be credited to a rupee account, mentioned in sub-para (I) or drawn in cash.