With
a view to rationalize the foreign exchange markets, State
Bank of Pakistan has taken the following measures with
immediate effect:
1. Forward Cover Facility against Imports
Attention of Authorized Dealers is invited to para 4 of
Chapter IV of FE Manual 2002 amended vide FE Circular
No. 16 dated November 01, 2004 and other instructions,
in terms of which Authorized Dealers were allowed forward
booking against imports on L/C basis.
In
this respect, it has been decided to temporarily suspend
forward booking against all types of imports. Authorized
Dealers are, therefore, advised not to sell to their customers,
foreign exchange on forward basis against imports. Commitments
already made will, however, be honored by them in accordance
with the terms of related contracts subject to compliance
of related rules and regulations.
2.
Advance Payment against Imports
Attention of the Authorized Dealers is invited to FE Circular
No.03 dated April 29, 2008 in terms of which importers
were allowed to effect advance payment to the extent of
50% of the FOB or CFR value of the goods to be imported
subject to observance of terms and conditions mentioned
therein. It has now been decided that the said facility
will be available only to the extent of 25% of the FOB
or CFR value of the goods to be imported. Other instructions
on the subject will remain unchanged.
3.
Payments against import of POL Products
Attention of the Authorized Dealers is invited to EPD
Circular Letter No. 16/2(47)-2007 dated July 11, 2007
according to which 1) all purchases of foreign currency
related to the import of Furnace oil were to be made by
the Authorized Dealers from the Interbank market 2) all
POL related foreign currency purchases which are made
on the basis of specific Form ‘M’ approval
issued by the Exchange Policy Department were to be made
by Authorized Dealers from the interbank market. It has
now been decided that State Bank of Pakistan will provide
foreign exchange to the Authorized Dealer for the import
of all categories of Furnace oil and also against the
above mentioned Form ‘M’ approvals.
State
Bank of Pakistan will also continue to provide foreign
exchange to Banks for the import of all other POL products
including those specified in point No.1 & 2 above
(as per EPD Circular letter No.12/Policy-2004 dated November
01, 2004).
4.
Cut-Off Timings for dealing by Banks Treasuries
Attention of the Authorized Dealers is invited to FSCD
Circular No. 02 dated Jan 24, 2007 in terms of which the
cut-off time for all types of Foreign Exchange Transactions
was set upto 4:30 pm Monday through Friday and upto 1:00
pm on Saturday. It has now been decided to set the cut-off
timing for all types of Foreign Exchange Transactions
by Authorized Dealers with their customers and in the
Inter-Bank market upto 2:00 pm Monday through Thursday
and upto 1:00 pm for Friday and Saturday. Authorized Dealers
are, however, allowed to transact foreign exchange swap
transactions in the Inter Bank market upto 4:30 pm Monday
through Friday and up to 1:00 pm on Saturday. Inter Bank
swaps would include normal swap transactions involving
two simultaneous transactions with the same Authorized
Dealer and exclude any structured Foreign Exchange Swaps
i.e. two outright transactions with different Authorized
Dealers.
Authorized Dealers are advised to bring the above to the
notice of their constituents for strict compliance.