The Head/Principal Offices of all

Authorized Dealers in Foreign Exchange

Dear Sirs/ Madam,

With a view to ensure strict compliance of SBP’s instructions in letter and spirit, attention of the Authorized Dealers is invited to the following:

1. Forward cover facility against Imports

   Authorized Dealers are reminded that in terms of FE Circular No. 16, dated November 01, 2004, Authorized Dealers are allowed to provide forward cover facility against imports in only those transactions where imports are being made against letters of credit.

2. Settlement of FE 25 Loans for Exports

   Authorized Dealers are advised to ensure that all FE 25 loans against intended exports shall only be settled through realization of export proceeds or remittances from abroad as already conveyed vide FE Circular No. 16, dated November 01, 2004.

3. Close-out Procedures for forward contracts

   Authorized Dealers should ensure compliance of SBP’s instructions contained in Para 11, Chapter IV, FE Manual 2002 regarding procedure for close out of the forward contracts as amended from time to time vide FE Circulars..

4. Export Proceeds Realization

   Authorized Dealers’ attention is invited to SBP’s rules & regulations governing timely realization of export proceeds as contained in various paras of Chapter XII of FE Manual and Foreign Exchange Regulation Act 1947 amended from time to time. Strict compliance of the related instructions is to be ensured in case of delay in realization of overdue export proceeds.

Authorized Dealers are advised to bring the above to the notice of their constituents for strict compliance.