in Foreign Exchange,
CREDIT OF US$ 50 MILLION TO IRAN
of Pakistan has provided a Credit of US$ 50 million to Iran
for the purchase of Pakistani goods excluding rice.
Following procedure has been prescribed for handling transactions
relating to exports from Pakistan under the above credit:-
Irani buyers will open letters of credit in favour of Pakistani
exporters after obtaining approval from the Central Bank
of the Islamic Republic of Iran (CBI) and advise communicate
the same to the exporters through an Authorized Dealer in
Pakistan. An authenticated copy of CBI’s approval
will invariably be sent with the letter of credit.
(ii)In case where letter of credit is opened through cable/telex,
No. and date of CBI’s approval will be specified in
such cable/telex and an authenticated copy of CBI’s
approval will be sent by the L/C-opening bank in Iran to
the L/C-advising bank in Pakistan separately.
(iii) The L/C-advising bank in Pakistan will advise the
letter of credit to the beneficiaries only after obtaining
clearance regarding availability of balance in the credit
from the Director, Accounts Department, State Bank of Pakistan,
Central Directorate, Karachi through the respective area
office of State Bank of Pakistan (SBP). To this end, L/C-advising
bank will furnish to the area office of State Bank of Pakistan,
a copy of the relative letter of credit.
(iv) All contracts, letters of credit, invoices etc. pertaining
to exports under the Credit will be expressed in US$.
(v) The letter of credit opened under this Credit will invariably
provide the following clause:-
"The negotiating bank should
reimburse itself from State Bank of Pakistan under Banking
Arrangement dated the 27th July, 1995
between State Bank of Pakistan and the Central Bank of Islamic
Republic of Iran".
After shipment of goods, the negotiating bank will negotiate
the documents, transmit the same to the L/C-opening bank
in Iran and obtain payment from State Bank of Pakistan at
the O.D. buying rate obtaining on the date of negotiation.
While seeking reimbursement from State Bank of Pakistan,
the negotiating bank will indicate the L/C No., amount paid
and will also certify that the documents negotiated were
strictly in conformity with the terms of the relative of
(vii) The funds available under this credit can be utilized
for financing FOB/C&F cost of the goods as also the
bank charges, which are for the account of the openers.