In Foreign Exchange,
SECTOR DIRECT BORROWINGS INCLUSIVE OF SUPPLIERS CREDITS
/ GUARANTEED LOANS / PAYE LOANS – ABSORPTION OF EXCHANGE
RISK BY THE GOVERNMENT AGAINST PAYMENT OF FEE
Attention of Authorized Dealers
is invited to F.E. Circular No. 76 dated the 18th October,
1984 as amended through F.E. Circulars issued from time
to time in terms of which State Bank of Pakistan has been
providing on behalf of the Federal Government exchange risk
coverage to the Private Sector direct borrowings inclusive
of suppliers credit / guaranteed loans / PAYE loans.
2. It has been decided to wind
up the scheme with immediate effect. As a consequence, State
Bank of Pakistan will not henceforward receive any application
for registration of exchange risk coverage option. The valid
requests for registration of State Bank of Pakistan before
the date of issue of this circular will, however, be entertained
in accordance with the provisions of the relevant F.E. Circulars.
It is further clarified that even after winding up of the
scheme, State Bank of Pakistan will continue to provide
exchange risk coverage in respect of the loans where the
options were validly registered by the State Bank of Pakistan
before the date of issue of this F.E. Circular.
3. The State Bank will have
no objection if an Authorized Dealer wants to extend forward
cover in such cases on rollover basis.
4. Please bring the above to
the notice of your constituents