Please refer to F.E. Circular No.9 dated the 2nd February, 1993 on the captioned subject.

2. With a view to widening the scope of the facility made available through the above F.E. Circular, it has been decided to permit the Authorized Dealers in Pakistan to extent the facility from within their net open position. The modus-operandi in this regard shall be as under:

1. The exporters will approach the Authorized Dealer for forward sale of third currency against forward purchase of US$.

2. The Authorized Dealer will book forward sale of US$ against forward purchase of the relative third currency.

3. The Authorized Dealer will simultaneously sell forward the relative third currency in the inter-bank market in Pakistan/in the international market against forward purchase of US$ amount to the exporters at the ready rate.

4. Upon realization the Authorised Dealers will make payment of rupee equivalent of US$ amount to the exporters at the ready rate.

5. In case the contract booked by the Authorized Dealer outside Pakistan envisaging forward purchase of US$ against forward sale of the third currency is not taken up due to non-delivery of the third currency by the exporters, resulting in closing out of the contract and payments by the Authorized Dealer, such remittance will be made against encashment of FEBCs in Pakistan rupees.

6. When a forward cover is booked in accordance with the permission given above, the exporter should submit a copy of the cover note to the Authorised Dealer in Pakistan through the export documents are proposed to be sent abroad, and declare on the 'E' form, the value of the goods both in the contracted currency as well as its equivalent in U.S. Dollars at the booked rate. The exporter will also furnish a copy of the cover note to the Authorised Dealer to which U.S. Dollar amount representing export proceeds will be sold. The Authorized Dealer while reporting the export receipt in its monthly foreign exchange returns, would attach the cover note with the triplicate 'E' form.

3. The permission given vide F.E. Circular No.9 of 1993 is hereby withdrawn.