All Authorized Dealers
in Foreign Exchange,

Dear Sirs,

It has been decided that in cases of remittance, of the following nature, the approvals will be given by the State Bank. Accordingly, the powers delegated to the Authorised Dealers in the Foreign Exchange Manual are withdrawn with immediate effect.

1. Repayments under P.A.Y.E. Scheme, Suppliers Credit,Buyers Credit and Loans - Remittance on account of
   principal, interest etc. (Paragraph 51 and 53, Chapter XIII)

Such remittance will require prior approval of the State Bank notwithstanding the registration of repayment schedule. Applications with details mentioned in these paragraphs, and export realization certificate (App-V-35 (formally V-40) ) in case of PAYE loans, should be submitted to the area Control for approval.

2. Imports without Letter of Credit - Advance Payment (Paragraph 55, Chapter XIII)

Such advance remittances would henceforth require prior approval of the Control. Applications for the purposes should be supported by performs invoice / indent and the reasons for not opening letter of credit, where the payment is desired to the be made in advance. In case of remittance after receipt of the goods in Pakistan, a copy of the invoice, bill of exchange and customs bills of entry should be submitted alongwith application on form 'I'.

3. Royalty and Technical Fee (Paragraph 10 and 11, Chapter XIV)

Applications should be submitted to the Joint Director, Investment Division, Foreign Exchange Department, State Bank of Pakistan Karachi in the manner prescribed in these paragraphs.

4. Dividend (Paragraph 13, Chapter XIV)

Applications alongwith the documents mentioned in the above paragraph should be submitted to the Joint Director, Investment Division Foreign Exchange Department State Bank of Pakistan Karachi for consideration.

5. Advertisement (Paragraph 16, Chapter XIV)

The powers delegated to the Authorized Dealers are withdrawn to the extent of remittances on account of advertisement expenses by non-exporters. Applications of non-exporters should be submitted to the Area Control alongwith the demand note and justification for the advertisement.

6. Membership Fees of Bonafide Social Clubs (Paragraph 16, Chapter XVI)

No foreign exchange will be made available for this purpose. Requirement of foreign exchange for payment of such fees will be met from free market.

7. Repayment of Loans (Paragraph 12 (ii) and (iii), Chapter XIX)

All such remittance applications should be submitted to the Joint Director, Investment Division. Foreign Exchange Department, State Bank of Pakistan, Karachi alongwith encashment certificate covering the loan amount, and the repayment schedule.

8. Remittance of the profit & disinvestment of Shares & Securities
   (Sub-paragraph f (ii) of Paragraph 6, sub-paragraph (d)
   of paragraph 7 and paragraph 8, Chapter XX)

Applications for such remittances including transfers abroad from the special foreign currency accounts should be submitted on form 'M' alongwith the proceeds realization certificates relating to the inward remittances and evidence of sale.