The Presidents/Chief Executives of

All Authorized Dealers in Foreign Exchange

Dear Sir/Madam,

Guarantees and Collaterals in favor of Overseas Bank Branches and Correspondents

1. In order to facilitate the non-resident holders of Naya Pakistan Certificate (NPC), issued in terms of Naya Pakistan Certificates Rules (NPC Rules), 2020 notified by Government of Pakistan (GOP) vide Gazette notification No. S.R.O. 817(I)/2020 dated 8th September 2020, existing text of para 15, Chapter 19 of Foreign Exchange Manual has been numbered as sub-para (i) of paragraph 15 and following new instructions are added as sub-para (ii):

“(ii) Notwithstanding anything contained in sub-para (i) above, Authorized Dealers have general permission to pledge the Naya Pakistan Certificate (NPC), issued in terms of Naya Pakistan Certificates Rules (NPC Rules), 2020 notified by Government of Pakistan (GOP) vide Gazette notification No. S.R.O. 817(I)/2020 dated 8th September 2020, on the specific request of non-resident NPC holder, in favor of the Authorized Dealer’s Overseas Bank Branches and Correspondents. Further, Authorized Dealers are also allowed to issue guarantee/standby letter of credit in favor of their Overseas Bank Branches and Correspondents against pledge of NPC in their own favor, on the specific request of non-resident NPC holder.”

2. The Authorized Dealers shall be responsible to ensure compliance with all other laws and regulations.