AAll 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. 24 dated the 26^th February, 1994 in terms whereof the instructions contained in F.E. Circular No. 16 dated the 15^th February, 1994, permitting shipments under the above Credit upto the 30^th September, 1994, were suspended.

2. It has now been decided by the Government in order to expedite the utilization of the credit that:-

1. The suspension order holding back the extension in the shipment date will be revoked;

2. The eligible letters of credit (those without UN Sanction Committee’s approval, if required, are to be treated as ineligible L/Cs) will be processed on First come First served basis; and

3. Letters of Credit for export of rice upto US$ 5 million which has now been included in the list of eligible commodities under the Credit may be processed on the principle outlined as at (ii) above.

3. In order to complement the above decision of the Government, it has become necessary for the State Bank to issue fresh clearance against the un-utilized amount of the Credit. Accordingly, Director, Accounts Department (Accounts Correspondence Section), State Bank of Pakistan, Central Directorate, Karachi will issue fresh clearances in respect of the un-utilized amount of the already cleared letters of credit as well as fresh Letters of Credit on first come first served basis on approach by the beneficiaries of the Letters of Credit through their bankers supported by the following documents/information:-

1. Original copies of Letters of Credit (with amendments if applicable ) with validity for shipment upto 30-09-1994.

2. Clearance from UN Sanctions Committee, where required.

4. It may be noted that out of the un-utilized balance of the credit, an amount of U.S. Dollar Five Million has been ear-marked exclusively for export of rice.

5. The above instructions may please be brought to the notice of your constituents.