All Authorized Dealers in
Foreign Exchange,

Dear Sirs,

PAKISTAN’S CREDIT OF US$ 50 MILLION TO IRAQ

Attention of Authorized Dealers is invited to F.E. Circular No.65 dated the 1^st November, 1989 as amended from time to time.

2. Due to outbreak of Gulf war in 1990, exports to Iraq had been suspended. It has now been decided to permit exports to Iraq under Pakistan’s credit of US$ 50 million subject to the following terms and conditions:-

1. Exports made against letters of credit opened by the Iraqi buyers on or after the date of issue of this circular will qualify for financing under the above credit.
2. Export of only those items will be permissible which are covered by the list of items eligible for being financed under this credit as circulated from time to time through F.E. Circulars. This is further subject to the condition that exporters would – through their bankers – produce necessary "No Objection" from the United Nations Security Council’s Committee while applying to the State Bank of Pakistan for obtaining clearance in respect of the relative letter of credit.
3. L/Cs must be opened by the Iraqi buyers up to 31^st October,1992 & shipments is completed by 30^th April, 1993.
4. All other terms and conditions laid down in F.E. Circular No.65 of 1989 would apply to the exports to be made hereafter in terms of this F.E. Circular.

3. We are also examining in consultation with the Central Bank of Iraq possibility of financing under this credit the exports of eligible items to be made against letters of credit which were opened by the Iraqi buyers under Pakistan’s Credit of US$ 50 million to Iraq before the outbreak of Gulf War where against shipments could not be made provided exporters have obtained necessary "No Objection" form the United Nations Security Council’s Committee. To this end, Authorized Dealers are requested to immediately furnish to us necessary details in the following format:-

Sl. No.	Name/ Address of Iraqi Buyers.	Name/ Address Of Pakistani Exporters	Particulars of L/C .			L/C Advising Bank in Pakistan	Remarks
			L/C No.& Date	L/C Opening Bank	Present Outstanding Amount of L/C.
1	2	3	4	5	6	7	8

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