Circulars/Notifications - Exchange Policy Department  
 F.E. Circular No. 36
April 02, 1992 

All Authorized Dealers
In Foreign Exchange,

Dear Sirs,


It has been decided to allow the Investment Banks to raise foreign currency funds from abroad through issue of Certificates of Investment, which shall bear maturity of not less than 3 months. The foreign exchange so raised will be required to be surrendered immediately to State Bank of Pakistan. In this connection, following instructions will be followed:-

  1. The Certificates will be registered and shall not be encashed before maturity.

  2. The Certificates will be denominated in US $, . Stg, Deutsche Mark and Japanese Yen.

  3. The rate of profit will be indicated on the face of the Certificates and will not exceed the rate of interest applicable to similar deposits received by commercial banks under the Foreign Currency Accounts Scheme.

  4. The foreign currency amounts representing sale proceeds of the Certificates will be surrendered in State Bank of Pakistan’s following accounts on the same day on which the same are received by them:-

      a) US.$ Account maintained with Federal Reserve Bank,New York.

      b) .Stg Account maintained with Bank of England.

      c) D.M. Account maintained with National Bank of Pakistan, Frankfurt.

      d) J.Yen Account maintained with National Bank of Pakistan, Tokyo.

  1. Simultaneously with the surrender of foreign currency amounts, the Investment Bank will provide the details of the amount surrendered, period for which the deposit has been taken, interest rate, and amount of interest to the Chief Manager, State Bank of Pakistan, Karachi/Lahore. The concerned Chief Manager will pass on rupee equivalent of the amount surrendered to the Investment Bank and will also book forward cover for the amount surrendered plus profit covering the period of deposit.

  2. Upon maturity of the Certificates, the Investment Bank will make remittances of the amounts of principal/profit by repurchasing the relevant amounts from State Bank of Pakistan at the same exchange rate at which the rupee equivalent was paid by the State Bank of Pakistan at the time of surrender of foreign currency.

2. As mentioned in Para-1 above, State Bank of Pakistan will pass on rupee equivalent of the amount surrendered on the basis of Investment Bank’s letter. In case of delayed surrender of the amount, State Bank of Pakistan will recover penalty @ Rs.4.00 per Rs.10,000/- per day from the Investment Bank.

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