All
Authorised Dealers
in Foreign Exchange,
Dear
Sirs,
ACCOUNTS
OF DIPLOMATIC MISSIONS,
INTERNATIONAL ORGANISATIONS ETC.
Attention
of Authorized Dealers is invited to the instructions issued
vide FE circular No. 18 dated July 5, 1999 and FE circular
No. 19 dated July 8, 1999 on the captioned subject. The
government has since decided to allow the diplomatic officers
and home based members of the missions’ staff in Pakistan
and the expatriate employees of international organizations,
to make withdrawals in the shape of foreign currency notes
from their foreign currency accounts opened in accordance
with the instructions issued vide FE circular No. 19 of
1999. Without any restriction. However, the existing restriction
on withdrawals in the shape of foreign currency notes from
the official accounts of diplomatic missions and international
organizations will remain in force. It is further clarified
that the special foreign currency accounts opened in terms
of FE circular No.19 of July 8, 1999 can be used by diplomatic
missions for making payment to the diplomatic officers and
home based members of the missions staff and by the international
organizations for making payment to their expatriate employees
in foreign currency or for credit to a convertible rupee
account.
2.In
order to make a provision in the Foreign Exchange Manual
for the instructions issued vide
FE
circular No. 19 of 1999, as amended above, paragraph 8 of
chapter XVI is renumbered as 8(I) and paragraph 8(ii) is
added as annexed.
Annexure
to FE 21/99
(II)
In addition to the above, the Diplomatic Missions accredited
to Pakistan and International Organizations in Pakistan
are permitted to maintain special Foreign Currency Accounts
for the purpose of receiving funds from abroad. Receipts
into these accounts will not be required to be surrendered
by the Authorized Dealers to the State Bank and the Authorized
Dealers may retain such balances in their Nostro accounts
in addition to their trading Nostro limits. Such balances
shall, however, be reported in columns 10 and 11 of the
"Statement of Foreign Currency Balances Held Abroad"
in the proforma prescribed at page 5 of Appendix V of the
Manual. The special foreign currency accounts may be used
for remittances abroad through normal banking channels,
issuance of foreign currency denominated travelers cheques,
payment to a special foreign currency account of a diplomatic
officer/home based members of their staff/expatriate employee
of an international organization in Pakistan and for payment
to a Duty Free Shop/Bonded Ware-house in Pakistan. Withdrawals
in the shape of foreign currency notes from the official
accounts of diplomatic missions and international organizations
will be allowed only for the purpose of travel abroad. Subject
to a maximum limit of $ 5000 (or equivalent thereof in other
currencies) per person per visit. There will, however, be
no restriction on withdrawal of foreign currency notes by
Diplomatic Officers, their home based staff and expatriate
employees of international organizations. Conversion of
amounts from such accounts into Pak rupees shall be done
only through the interbank market and the rupee amounts
so converted may be credited to a rupee account, mentioned
in sub-para (I) or drawn in cash.