In Foreign Exchange,
CREDIT OF US$ 50 MILLION TO IRAQ
of Authorized Dealers is invited to F.E.
Circular No. 24 dated the 26th February, 1994
in terms whereof the instructions contained in F.E.
Circular No. 16 dated the 15th February, 1994,
permitting shipments under the above Credit upto the 30th
September, 1994, were suspended.
2. It has
now been decided by the Government in order to expedite
the utilization of the credit that:-
suspension order holding back the extension in the
shipment date will be revoked;
eligible letters of credit (those without UN Sanction
Committees approval, if required, are to be
treated as ineligible L/Cs) will be processed on First
come First served basis; and
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:-
copies of Letters of Credit (with amendments if applicable
) with validity for shipment upto 30-09-1994.
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.
The above instructions may please be brought to the notice
of your constituents.