All Authorised Dealers
in Foreign Exchange,

Dear Sirs,

RELEASE OF FOREIGN EXCHANGE FOR TRAVEL PURPOSES

Attention of Authorized Dealers is invited to F.E.Circular No. 4 dated the 28^th March, 1999 in terms of which foreign exchange facility for all travel purposes including official travel, health, studies abroad, religious travel etc. has been restored w.e.f. 31^st March, 1999 at the composite rate. As a safeguard against the potential misuse of the facility, it has been decided that travelers cheques issued in Pakistan would not be encashed by Money Changers and certain stringent procedures will be followed by authorized dealers while releasing the foreign exchange.

2. More specifically it has been decided that :-

1. Each traveler will be required to fill in a T-1 form for himself. He may, however, include that names of those of his dependents travelling with him who are eligible for exchange quota.

2. Code number of the ticket issuing agency will be indicated in column No. 2 at page 2 of the T-1 form beside the name of ship/airline. This information may be given by bifurcating the Column till stock of old T-1 forms is exhausted.

3. Authorized Dealers shall stamp with signature the first page of ticket jackets as also back side of the passenger’s coupon (last page) with the amount of foreign exchange issued and a hole will also be punched in the upper right hand corner of the passenger’s coupon.

4. The Authorized Dealers will carefully examine the tickets and shall ensure that the State Bank of Pakistan’s authority under which ticket has been issued is clearly indicated on the tickets. Private Travel Exchange Quota (PTEQ) will be released only against those tickets which are issued in Pakistan under authority delegated vide "Para 4(I)(a) 4(ii)(a), (c) and 4(iii) Chapter XVII of the Foreign Exchange Manual". Photo copies of pages 1,2 & 3 with inside title pages and that page of passport on which endorsement of release of foreign exchange is made and first coupon of the ticket issued for private travel will continue to be submitted to the Foreign Exchange Department along with the T-1 forms.

3. Repeat private travels on foreign airlines/foreign shipping companies, which could be undertaken once-in-two calendar years, will henceforth be permissible once-in-each calendar year, with effect from this calendar year. Consequently, the following amendment is made in para 4(I)(a) of Chapter XVII of the Foreign Exchange Manual :

The words "once-in-two calendar years" appearing in the 6^th line shall be substituted by words "once in-each calendar year".

4. Sub-para (iv) of para 6, Chapter II of the Foreign Exchange Manual (7^th Edition, 1992) is amended as under :

"Authorized Money Changers’ activities will be restricted to purchase of foreign currency notes and coins and foreign currency travelers cheques excluding foreign currency travelers cheques issued in Pakistan and sale of foreign currency notes and coins only"

5. Attention of the Authorized Dealers is also invited to the instruction contained in paragraph 44, Chapter XVII (also F.E.Circular No. 38 of 1996) regarding mention in place and date of issue on Travelers Cheques issued by them, and they are advised to ensure its compliance.