Circulars/Notifications - Exchange Policy Department  
 F.E. Circular No. 01
January 18, 2000 

All Authorised Dealers
in Foreign Exchange,

Dear Sirs,

Please refer to the instructions conveyed vide FE Circulars No. 34 and 37 dated the 8th July, 1998 and the 13th July, 1998 respectively regarding withdrawal of powers delegated to them in the Foreign Exchange Manual. The position has since has been reviewed and the powers withdrawn in terms of the said circulars are restored with immediate effect in the case of remittances of following nature :-

i) Remittance on account of principal, interest etc. on the basis of repayment schedules registered with the SBP of purely private sector excluding those organizations which are 51% or more owned by the Government - paragraphs 51 and 53/of the FE Manual.

ii) Remittances on account of Royalty and Technical Fee admissible as per paragraphs 10 & 11 of Chapter XIV of the FE Manual.

iii) Remittances of Divident to non-resident shareholders on the basis of documentation prescribed by the SBP - paragraph 13 of Chapter XIV of FE Manual.

iv) Remittance of instalments of principal and interest of foreign currecy loans by Pakistani firms and companies on the bais of repayment schedule registered with SBP and remittances of principal and interest on account of foreign currency loans obtained by foreign controlled companies for working capital requirements in terms of repayment schedule communicated to the SBP - paragraph 12(ii) and 12(iii) of Chapter XIX of FE Manual.

2. In terms of para 28 of Chapter XIII of the Foreign Exchange Manual the Authorized Dealers were permitted to registered contracts.purchase orders/proforma invoices/indents etc. for imports without letter of credit, provided the import of the concerned goods was not subject to specific authorization from the Export Promotion Bureau/Ministry of Commerce. This facility was withdrawn vide FE Circular No 37 of 1998. It has been decided to restore the said facility with immediate effect, subject to the condition that such imports will be made of only those commodities which do not require specific authorizsation from the Export Promotion Bureau/Ministry of Commerce and which are not subject to the margin restrictions imposed by our Banking Policy & Regulations Department.

3. Other instructions will, however, remain unchanged.


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