With
a view to ensure strict compliance of SBP’s instructions
in letter and spirit, attention of the Authorized Dealers
is invited to the following:
1) Forward cover facility against Imports
Authorized Dealers are reminded that in terms of FE Circular
No. 16, dated November 01, 2004, Authorized Dealers are
allowed to provide forward cover facility against imports
in only those transactions where imports are being made
against letters of credit.
2) Settlement of FE 25 Loans for Exports
Authorized Dealers are advised to ensure that all FE 25
loans against intended exports shall only be settled through
realization of export proceeds or remittances from abroad
as already conveyed vide FE Circular No. 16, dated November
01, 2004.
3) Close-out Procedures for forward contracts
Authorized Dealers should ensure compliance of SBP’s
instructions contained in Para 11, Chapter IV, FE Manual
2002 regarding procedure for close out of the forward
contracts as amended from time to time vide FE Circulars..
4) Export Proceeds Realization
Authorized Dealers’ attention is invited to SBP’s
rules & regulations governing timely realization of
export proceeds as contained in various paras of Chapter
XII of FE Manual and Foreign Exchange Regulation Act 1947
amended from time to time. Strict compliance of the related
instructions is to be ensured in case of delay in realization
of overdue export proceeds.
Authorized Dealers are advised to bring
the above to the notice of their constituents for strict
compliance.