This is an updated and revised edition of Foreign Exchange Manual.
Since the publication of seventh edition of the Manual in 1992,
innumerable developments have taken place in the regime of Foreign
Exchange. All the efforts of de-regulation of the economy and
creation of a liberal Foreign Exchange regime received great
setback after nuclear detonation in 1998 resulting in imposition
of sanctions etc. As the economic reform process has once again
been put back on track it was deemed necessary to resume the
path of liberalizing foreign exchange regime. The State Bank
has made a paradigm shift in its own role i.e. from implementing
direct controls to providing guidance and ex-post monitoring.
Accordingly, various controls specified under the Manual have
been eliminated and powers of decision making have been delegated
to the Authorised Dealers. This shift has therefore necessitated
a complete rewriting and revision of the Foreign Exchange Manual.
The current (eighth) edition has been published in
two volumes for the convenience of the users.
Volume–I consists of summary of instructions issued to
Authorised Dealers, the Foreign Exchange Regulation Act, 1947,
the Notifications issued thereunder by the Federal Government
and State Bank of Pakistan and the list of Authorised Dealers.
Volume – II consists of specimen of the prescribed forms, list
of Chambers of Commerce and Industry and Trade Associations
authorised to recommend business travel cases and scales of
daily allowances.
As a change in State Bank’s policy, the amendments
in the Manual have been made in consultation with the persons
related to Foreign Exchange field i.e. traders, importers and
exporters etc. and the views of Authorised Dealers have also
been incorporated. The draft proposals including Circulars are
now vetted as a matter of routine by the representatives of
the Authorised Dealers. Changes in the Manual, made from time
to time, are conveyed to the Authorised Dealers through F.E.
Circulars/Circular Letters. Although these Circulars are posted
regularly on SBP Web page it is advisable, as a matter of abundant
caution, that those using the Manual should consult their bankers
before entering into transactions covered by the instructions
laid down in the Manual. It is obvious that up-dating of the
Manual will be an ongoing process and future changes will continue
to be made whenever necessary keeping in view the changing demand
of the users and suppliers of foreign exchange.