All Authorised Dealers
in Foreign Exchange,

Dear Sirs,

ACCOUNTS OF DIPLOMATIC MISSIONS,
INTERNATIONAL ORGANIZATIONS ETC

Attention of Authorised Dealers is invited to the instructions contained in paragraphs 8 & 9, Chapter XVI of the Foreign Exchange Manual regarding maintenance of convertible and non-convertible rupee accounts by Diplomatic Missions etc. it has been decided that in view of this provision, which meets all legitimate requirements for foreign currency, the facility of foreign currency account as described in Chapter VI of the Manual and F.E. Circular No. 25 of 1998 shall no longer be available to Diplomatic Missions accredited to Pakistan, their Diplomatic Officers and home-based members of the Missions’ staff in Pakistan, as also all international organisations in Pakistan and their expatriate employees. It has also been decided to amend some provisions of paragraph 8 of Chapter XVI. Accordingly, the following amendments are made in the Manual : -

1. Para 1(a) – Chapter VI

The words "all diplomatic missions accredited to Pakistan, their Diplomatic Officers, all International Organisations in Pakistan" appearing in the fifth sentence of paragraph 1(a), Chapter VI are deleted.

2. Para 8 – Chapter XVI

Item (v) of permissible debits to Convertible Rupee Account 1 substituted with the following and item (vi) is added, as under : -

"(v) Issuance of foreign currency notes not exceeding $ 100 per person and foreign currency travellers’ cheques for the purpose of travel abroad.

1. Payments in foreign exchange to a Duty Free Shop in Pakistan."

The revised version of paragraph 8 – Chapter XVI is enclosed.

1. It would be permissible for the Authorised Dealers to allow withdrawals from the existing Foreign Currency Accounts of this category of account holders till such time the balance therein is exhausted, or to convert the amounts into rupee for credit to a Convertible Rupee Account, at the option of the account holder.

STATE BANK OF PAKISTAN

FOREIGN EXCHANGE DEPARTMENT

KARACHI

F.E.D Circular No. 19 July 5, 1999

All Offices,

Please distribute the above F.E. Circular No. 18 among all Authorised Dealers in your area.

Revised Paragraph 8 – Chapter XVI

1. Under the rules, all Diplomatic Missions accredited to Pakistan, their Diplomatic Officers

and home-based members of the Mission’s staff in Pakistan as also all international organisations in Pakistan and their expatriate employees are allowed to maintain two separate Rupee accounts with banks in Pakistan viz. (I) convertible rupee account and (ii) non-convertible Rupee account. Operations on these accounts are subject to the following rules:-

1. The convertible Rupee account can be credited with the following :-

1. Foreign exchange received from abroad through normal banking channel.
2. Foreign exchange encashed in Pakistan with any Authorised Dealer.
3. Transfer from any other convertible Rupee account.

Other credits to the convertible Rupee accounts would require the prior permission of the State Bank.

The convertible Rupee account can be debited with the following without the permission of the State Bank.

1. Payments in foreign exchange abroad.
2. Credit to any other convertible Rupee account.
3. Transfer to a non-convertible Rupee account.
4. Local disbursements.
5. Issuance of foreign currency notes not exceeding $100 per person and foreign currency travellers cheques, for the purpose of travel abroad.
6. Payments in foreign exchange to a Duty Free Shop in Pakistan.

1. The non-convertible Rupee account can be credited with the following : -

1. Transfer of funds from convertible Rupee account.
2. Remittances received from abroad through banking channel.
3. Other receipts from authorised sources.

Remittance from a non-convertible Rupee account or transfers therefrom to a convertible

Rupee account is not permissible. This account can, however, be debited freely without State Bank’s permission for making local payments.

All payments to officials of Foreign Missions and International Organisations are to be made from the convertible Rupee accounts of the Foreign Missions/International Organisations by credit to the convertible Rupee accounts of the said officials maintained with banks. The officials are free to transfer such amounts from their convertible Rupee account to their non-convertible Rupee account as they may consider necessary for meeting their local expenses from time to time.