Foreign Exchange Returns - Code Guide

Preface  

Definitions and Conceptual Framework

 I.         Introduction       3   

            Purpose of the Code Guide        3

            Changes from previous code lists      4                                 

            Composition of the Code Guide      4

 II.        Balance of payments            6

            Definitions   6

            Key concepts     6

            Classification   7

            Current account    7

            Goods and services   8

            Income    10

            Current transfers    11

            Capital and financial account   11

            Reserves   12

            Standard components   13

 Monthly foreign exchange returns

 III.       Reporting procedures for Authorized Dealers               21

            Terminologies     21

            Summary statements    25

            Schedules      25

            Forms    27

 IV.        Coding the foreign exchange transactions    29

Code lists

                Code list No. 1 – Schedule           35

Code list No. 2 – Currency    36

Code list No. 3 – Country    39

Code list No. 4 & 6 – Harmonized commodity classification    42

Code list No. 5 – Invisible and capital receipts    43

             Contents 

            Description

Code list No. 7 – Invisible and capital payments    68

            Contents

            Description

Code list No. 8 – Departments    92

Code List No. 9 - Units

Code List No. 10 - Inco Terms

 Annexure

 I.            Summary statements    I - III

                     S-1

                     S-4

                     S-6

II.            Schedules    IV - XXII   

                     A-I / O-I

                     A-2/O-2

                     A-3/O-3

                     J/O-3

                     H

                     B

                     C

                     D

                     O

                     L

                     E-2/P-2

                     E-3/P-3

                     E-4/P-4

                     EL-2/EL-3

                     M

                     F

                     G

                     P                     

                     N

                     R

 On our way towards International Standards and comparability of data world–wide, it is fundamental to have common understanding of concepts and definitions amongst the data suppliers, compilers and end users. The International Organization like International Monetary Fund, World Bank, International Accounting Standard Board (IASB), Financial Accounting Standard Board (FASB), Statistical Data and Metadata Exchange (SDMX) and others along with national bodies are working towards the achievement of the goal of convergence on a single set of high-quality standards around the world.

Statistics Department of the State Bank of Pakistan being the compiler of Balance of Payments Statistics, Money and Banking Statistics and Corporate Sector Statistics are very ambitious in adopting standard practices of data collection, compilation and dissemination. In connection with the compilation of Balance of Payments statistics, the lion’s share of information is received from Authorized Dealers (ADs) in Foreign Exchange.

The Foreign Exchange Regulation Act 1947 confers the authority to the State Bank of Pakistan for the monitoring of the foreign exchange transactions in and out of the country. State Bank of Pakistan made it mandatory for the ADs to report all the transactions in foreign exchange described under Chapter XXII of Foreign Exchange Manual. The data on these transactions are presently being collected under International Transactions Reporting System (ITRS) described. ITRS is the most comprehensive system of data collection on foreign exchange transactions used by the compilers of BOP. ITRS of banks is the major data source for the current account transactions of the BOP. It is very helpful to counter check the flows in the financial account and provide timely and most accurate data on the BOP.

We are now under the process of revamping the compilation of Pakistan’s Balance of Payments according to the guidelines provided by the International Monetary Fund (IMF) in Balance of Payments Manual-5^th Edition (BPM5-1993). In order to achieve this goal we have redrafted the “Code Guide” to provide guidelines to the banks and exchange companies authorized by the SBP to deal in foreign exchange business for reporting data under ITRS. The “Code Guide” also available at (www.sbp.org.pk) is aimed to give ADs all the relevant code lists that would facilitate the accurate classification of foreign exchange transactions. The queries or clarifications may be made to the Director Statistics directly or e-mail bop.query@sbp.org.pk.

The project team of “The Implementation of the BPM5” wishes to acknowledge, with thanks, its indebtedness for the valuable guidance of Mr. Niaz Ahmed, Senior Joint Director and precious consultations with Mr. Zafar Iqbal, and Mr. Malik Muhammad Ashraf, Joint Directors.

Project Team

Statistics Department

Mr. Naseer Ahmad                  naseer.ahmed@sbp.org.pk

Mr. Kamran Akram Bakhshi    kamran.akram@sbp.org.pk

Mr. Shamsul Arifeen               shamsul.arifeen@sbp.org.pk

Mr. Shahid Latif                       shahid.latif@sbp.org.pk