The Head/Principal Offices of all
Authorized Dealers in Foreign Exchange

Dear Sirs/Madam,

PAYMENTS AGAINST POL PRODUCTS

Please refer to EPD Circular Letter No. 12/Policy-2004 dated November 01, 2004 on the captioned subject whereby it was decided that State Bank of Pakistan would provide the funds from its own resources to make payments in foreign currency in settlement of import of POL Products. On the basis of the growth in the Foreign Exchange flows in the interbank market and the increased Foreign Exchange Exposure Limits, it has been decided to amend the above circular letter as under:

1. All purchases of foreign currency related to the import of Furnace Oil (HS code 2710.1941) will be made by the Banks from the interbank market.
2. All POL related foreign currency purchases which are made on the basis of specific Form ‘M’ approvals issued by the Exchange Policy Department will be made by the Banks from the interbank market.
3. State Bank of Pakistan will continue to provide foreign exchange to Banks for the import of all POL products other than those specified in point no.1 & 2 above.

Above changes will be effective from Friday, July 13, 2007. All other instructions on the subject would remain the same.

Please ensure compliance of the above and bring the same to the notice of all your constituents.