in Foreign Exchange
of Authorised Dealers is invited to Cir. letters No. 6/FEP.1(95)L-98
dated February 13, 1998 whereby they were asked to furnish
the particulars of the exchange companies with whom they
had made drawing arrangements. They were also advised to
examine as to whether or not the conditions mentioned in
para 1 of the said circular letter were complied while making
such arrangements. Most of the Authorised Dealers did, however,
express their inability to make arrangements in line with
the guidelines spelled out in the aforementioned circular
letter due to various reasons.
Keeping in view the difficulties expressed by them and in
the wake of their recommendations, it has been decided that
henceforth the following guidlines will be followed while
entering into the drawing arrangements with the exchange
The banks in Pakistan shall obtain guarantee of a reputable
bank equivalent to one month’s aggregate rupee drawings,
that showed a highest level in the previous year.
The replenishment from the exchange companies should be
called within 4 to 5 days of the drawings.
It has further been decided to allow the opening of the
non-resident foreign currency accounts of exchange companies
operating abroad under FE Circular No. 25 of 1998, for the
specific purpose of handling home remittances, in supersession
of Para 2 of the instructions contained in our Cir. letter
No. 54/FEP.16(326)G-98 dated the 12th December, 1998.The
conversions, into Pak Rupees, from these accounts will be
made through inter-bank market.