All
Authorized Dealers
in Foreign Exchange,
Dear
Sirs,
The
following changes are made in various F.E. Circulars issued
by us :-
1.
Sub-paragraph (ii) of paragraph
1 of F.E. Circular No. 12 is substituted with the following
:-
"Withdrawals
from the existing foreign currency accounts - whether
maintained by the residents or non-residents - have been
temporarily suspended till further orders. State Bank
of Pakistan is developing a criterion for allowing withdrawals
from those accounts. Till such time as the criterion is
developed, withdrawals may be made in Pakistan rupees
if so desired by the account-holders. Payments in such
cases may be made by the Authorised Dealers at the rate
of exchange determined by them in terms of F.E.
Circulars Nos. 1 and 5 of 1998. The State bank will pay a cash subsidy to the
extent of the difference between the Authorised Dealer
buying rate and Rs. 46/- per US Dollar (and this rate
crossed with New York's closing mid-rate for the previous
working day in respect of other currencies as published
by the Foreign Exchange Rates Committee), which will also
be paid by the Authorised Dealers, and re-imbursement
claimed by them from the State Bank. The difference between
the booked rate - where forward cover has been obtained
from the State Bank - and the Authorised Dealers buying
rate may also be claimed from the respective office of
the State Bank and the relative forward cover got cancelled
to that extent.
2.
The third sentence of paragraph
6 of F.E. Circular No. 12 of 1998 is substituted with
the following :
"The
encashments will be made and re-imbursement of subsidy
claimed in the manner prescribed in paragraph 1 (ii)".
3.
The following bracket and words appearing in paragraph 2 of F.E. Circular No. 17 of 1998
are deleted :-
"(and
not @ Rs. 46/- to a Dollar)"
4.
The words "Special rate of exchange of Rs. 46/- to
a Dollar" appearing in the first line of paragraph
5 of F.E. Circular No. 17 of 1998 are substituted with
the following :-
"That
the cash subsidy payable by the State Bank".
5.
The third sentence of F.E. Circular No.
19 of 1998 is substituted with the following :-
"The
concerned bank will debit the account with the foreign
currency amount and pay the rupee equivalent along with
the cash subsidy as stated in F.E. Circular No. 12 of
1998 to the State Bank, reporting it as a donation in
foreign currency, arrange cancellation of the forward
cover, if any, and claim the exchange differential and
the subsidy from the State Bank".
6.
Paragraph 'A' of F.E. Circular
No. 25 of 1998 is substituted with the following :-
"A
- HOME REMITTANCES AT THE RATE OF
Rs. 46/- = $ 1 THROUGH
BANKING CHANNELS
All
inward remittances of foreign currency under the Home
Remittance Scheme shall be paid by the Authorised Dealers
at the rate of exchange determined by them in terms of
F.E. Circulars Nos. 1 and 5 of 1998. The State bank will
pay a cash subsidy to the extent of the difference between
the Authorised Dealers buying rate and Rs. 46/- per U.S.
Dollar (and this rate crossed with New York's closing
mid rate for the previous working day in respect of other
currencies as published by the F.E. Rates Committee) which
will also be paid by the Authorised Dealers to the beneficiaries
and re-imbursement claimed by them from the State Bank
on submission of a statement showing total currency-wise
amounts, the Authorised Dealers clean T.T. buying rate
the amount payable by them and the amount actually paid.
The same principle will also apply to such payments made
from non-resident rupee accounts of overseas bank branches
and exchange companies. In other words, payments to the
beneficiaries of 'Home Remittance' from a non-resident
rupee account of an overseas bank branch or exchange company
will be made at the face value of the TT/MT/Draft etc,
and a cash subsidy to the extent of the face value multiplied
by 46 and divided by the Authorised Dealers T.T. Clean
buying rate for the U.S. Dollar will also be paid on behalf
of the State Bank, and re-imbursement claimed from that
State Bank. Detailed item-wise statements of the differential
so claimed shall be maintained by the Authorize dealers
for inspection by the Banking Supervision Department.
The State bank will carry out a random check to ensure
that the foreign branches of the Authorised Dealers receive
and transfer home remittances promptly and efficiently.
Any negligence or delay will invite strong action by the
State bank of Pakistan."
7.
The words "at the special rate of Rs. 46/- per Dollar"
appearing in the second sentence of paragraph
B(6) of F.E. Circular No. 25 of 1998 are deleted.
8.
The first sentence of paragraph
C(2) of F.E. Circular No. 25 of 1998 is substituted
with the following :-
"The
amount remitted under the above scheme in profit bearing
deposits can, however, be converted into rupees in the
manner stated in paragraph
1(ii) of F.E. Circular No. 12 of 1998."