In Foreign Exchange and
Investment Banks holding
OF FOREIGN CURRENCY UNDER PAKISTAN NATIONAL DEBT RETIREMENT
Minister of Pakistan has appealed to all Pakistanis abroad
to transfer to Pakistan a part of their savings / income
that would be helpful for the National Debt Retirement Programme
and building up of countrys reserves. For this purposes,
it has been decided that all the Pakistani banks having
branches abroad would make special arrangements in such
branches with immediate effect for receiving foreign currency
remittances from Pakistanis abroad under the Programme,
keeping in view the legal requirements and guidelines of
the concerned authorities of the host country.
the Programme, all Pakistanis abroad would be expected to
remit a minimum amount of US$ 500, or equivalents thereof
(except for donations which can be for any amount) by transferring
through any overseas branch of a Bank or its correspondent.
The amounts will be mobilized in U.S. Dollar, Pound Sterling
and Deutsche Mark.
Pakistanis can also participate in the Programme by converting
their existing short-term foreign currency deposits, or
by buying foreign exchange against surrender of FEBCs /
FCBCs or by surrendering foreign currency notes / TCs, or
by arranging remittance from abroad.
The salient features of the Programme are as under:-
amount remitted may be given as an outright donation.
amount may be sent as Qarz-e-Hasna for a minimum period
of 2 years.
amount may be kept as profit bearing Deposit for a minimum
period of 2 years. The depositor will be entitled to
receive funds in the currency in which the deposit was
made. The return payable on quarterly basis on these
deposits will be as under:-
Bank branches in Pakistan which are not authorized to deal
in foreign exchange may also accept the contributions under
the Programme and process the same through the nearest authorized
depositor wishes to received the private on his deposit
in rupees, he can so indicate in writing to the concerned
bank which will arrange for transfer of the rupee amount
to a person designated by him.
will be kept in the name of the depositor. At the time
of placement of funds, or afterwards, another person
can be designated to receive the amount in case of mishap.
Dealers have agreed to handle all remittances under
this Programme free of charge / commission.
the existing laws, the deposit and return thereon are
exempt from all taxes in Pakistan and from compulsory
deduction of zakat.
the amount, the concerned overseas branch (and correspondents
of the Authorized Dealers at those places at which they
have no branch) will issue a remittance receipt indicating
name and address of the remitter, the purpose of the
remittance i.e. (a) (b)
or (c) of sub-para
(i) as indicated in the brochure being issue by
the Government, the amount and, in the case of deposit,
the name and address of the person who could claim the
amount in case of mishap to the depositor. In issuing
these receipts on the counter, banks will follow normal
banking procedure keeping in view the legal requirements
and guidelines of the concerned authorities of the host
country. If there is any information in the brochure
regarding nomenclature of the accounts, the same is
for the information of the remitter and the transactions
should be reported to the State Bank as per format given
in para 5 of this circular.
end of each day, overseas branches / correspondent will
remit the amounts and furnish the relevant particulars
to their Head Office / Main Office at a designated address.
In the case of amount remitted as deposits, the banks
will arrange to issue Fixed Deposit Receipt to be delivered
within two weeks from the date of remittance receipt.
In the case of Donations and Qarz-e-Hasna the Bank will
arrange to pay the rupee equivalent to the State Bank
for credit to National Debt Retirement Programme Account
No.1 (Donations) and National Debt Retirement Programme
Account No.2 (Qarz-e-Hasna) respectively.
Dealers accepting the deposits will surrender the same
to State Bank of Pakistan on the same lines as is being
done under the existing foreign currency accounts scheme.
State Bank of Pakistan will provide forward cover to
the Authorized Dealers concerned on payment of the prescribed
fee as under the existing foreign currency accounts
scheme. The exchange risk coverage fee prevailing at
the time of accepting the deposits will be applicable
for the entire tenure of the deposit and will be payable
on annual basis in advance.
making single remittance of US$ 100,000/ to US $ 1 Million
(or equivalent in other currencies) would be issued
a letter of appreciation signed by the Prime Minister,
in addition to the Deposit Receipt. A person sending
individual remittance of US $ 1 Million (or equivalent
in other currencies) and above will be invited to receive
the letter of appreciation personally from the Prime
Dealers are requested to separately give to the State Bank
of Pakistan names and addresses of all those individuals
who make a deposit of equivalent to US$ 100,000 and above,
indicating the exact amount remitted by them.
Dealers are also required to submit a list showing the names
of donors and amount donated by each of them, and another
list showing the names and addresses of persons having sent
amounts as Qarz-e-Hasna, the amounts sent by each and the
due dates of repayments. The State Bank will pass on the
lists to a designated officer in the Economic Affairs Division.
Ten days before each date of repayment, Authorized Dealers
will prepare a list of amounts due for repayment and the
name of beneficiaries and send the some to the designated
officer, who will authorize the State Bank to remit the
amount to the lenders through the same Authorized Dealer.
Banks holding Authorized Dealers License and all other Authorized
Dealers are also advised to put in place suitable arrangements
for mobilization of funds under the Programme.
9. The existing
Foreign Currency Accounts Scheme will continue.