All
Authorised Dealers
in Foreign Exchange,
Dear
Sirs,
FOREIGN
CURRENCY LOANS AND CREDITS
Please
refer to the instructions contained in paragraph
61 (ii), Chapter
XIII of the Foreign Exchange Manual (paragraph
47(ii) in the reprint issued vide circular letter No.49/FEP-Reg(12)-97
dated the 18th November, 1997) on the captioned
subject. In terms of the Government’s Investment Policy
– 1997, long term loans can be arranged from a bank,
financial institution, parent companies of multinationals
or under suppliers credit. Authorized Dealers are, therefore,
advised to replace the above sub-paragraph with following:
"As an
exception to the above, private sector entrepreneurs may
obtain foreign currency loans from banks, financial institutions,
parent companies of the multinationals and as suppliers
credit including credits under PAYE Scheme, not involving
government guarantee, for financing foreign currency cost
of the projects covered by the government’s Industrial/
Investment Policy and the instructions issued by SBP from
time to time. The loans should be contracted on the best
possible terms. The repayment period of such loans/credits,
however, should not be less than five years."
