Attention of the Exchange Companies is invited to F.E.
Circular No.8 dated July 8, 2006 in terms of which all
permissible inflows/ outflows of Exchange Companies were
required to be routed through either their Nostro Accounts
with banks abroad or their FCY Accounts maintained with
Commercial Banks in Pakistan. It has now been decided
that all permissible inflows/ outflows of Exchange Companies
are to be routed only through FCY Accounts maintained
with Commercial Banks in Pakistan. All Exchange Companies
are therefore required to close all their existing Nostro
Accounts with banks abroad and bring back the balances
held in those accounts into their FCY A/Cs in Pakistan
latest by May 31, 2008. All Exchange Companies are required
to report the compliance of the above instructions to
Exchange Policy Department alongwith documentary evidence.
2. Further, with a view to focus Exchange Companies on
their primary function of promoting home remittances,
it has since been decided that with immediate effect an
Exchange Company will be allowed to effect outwards remittances
on behalf of bonafide customers for permissible transactions
only to the extent of 75% of the home remittances mobilized
by the company during the preceding month. In this respect,
all Exchange Companies are required to report the above
on the enclosed format by 5th day of every month.
Attention of the Exchange Companies is also invited to
EPD Circular Letter No.6 dated April 01, 2005 wherein
the revised procedure for export of FCYs other than US
Dollars was prescribed. Henceforth Exchange Companies
are not allowed to export cash in U.K. Pound Sterling,
Euro and UAE Dirhams.
to comply with the above instructions will attract severe
regulatory action under related rules & regulations.