All Authorized Dealers
In Foreign Exchange,

Dear Sirs,

FORWARD COVER

Please refer to F.E. Circular No. 33 dated the 28th March, 1994 as modified vide F.E. Circulars No. 46 dated 26th May, 48 dated 12th June and 64 dated 22nd September,  1994 respectively on the above subject. In terms of F.E. Circular No. 33 of 1994, Authorised Dealers have been permitted to provide forward cover for export of goods, import of goods and repatriable foreign currency loans.

2. It has now been decided to permit the Authorised Dealers to provide forward cover to the Investment Banks, Leasing Companies and Modaraba Companies holding restricted Authorised Dealers' Licences issued by the State Bank of Pakistan, in respect of the funds mobilized by them from abroad against issuance of Certificates of Investment. The Authorised Dealers will provide forward cover to the above institutions only in respect of the funds brought by them from abroad and surrendered to the State Bank of Pakistan. The exchange rates for the forward sales to these institutions will be the same as charged by the Authorised Dealers to their other customers for forward sales of foreign currencies.

3. Please bring the above to the notice of your constituents