Circulars/Notifications - Exchange Policy Department  
 EPD Circular Letter No. 03 of 2023

January 13, 2023


The Presidents/Chief Executives of all
Authorized Dealers in Foreign Exchange

Dear Sir/Madam,

Utilization of Funds held in Exportersí Special Foreign Currency Account

        Attention of Authorized Dealers (ADs) is invited to Para 40 of Chapter 12 (Exports) of the Foreign Exchange (FE) Manual, which provides general instructions relating to utilization of funds held in Exportersí Special Foreign Currency Account. In order to facilitate exporters of goods/services, the scope of utilization of funds is being enhanced through following amendments:

  1. The existing clauses i), iv) and xiii) are substituted as under:
    i) Payment of commission/discount to the overseas agents/buyers/ affiliates;
    iv) Payment for fee/expenses related to advertisement, promotion, publicity, marketing, brand building, shelf spacing etc. of products abroad through third party agent, e-commerce platforms, digital platforms or through company’s own subsidiary/liaison/marketing office abroad;
    xiii) Payment for import of goods by exporters for the purpose of their own business, subject to compliance with applicable Import Policy Order and related laws/regulations issued by any government department and SBP;

  2. Following clauses are added after existing clause xiii):
    xiv)  Payments for software purchasing, hosting, licensing subscription;
    xv)  Payments for dividends of domestic entities to their shareholders abroad;
    xvi)  Payments for product listing on different platforms, including affiliate platforms;
    xvii)  Payments for certification fees;  
    xviii)  Payments for acquiring game development services and publishing services;

  3. Existing clause xiv and onwards are renumbered as clause xix), xx), and xxi). Further, renumbered clause xx) and xxi) are revised as under:
    xx) Operational expenses, including employee salaries, of liaison/ marketing/ representative offices abroad of local companies in accordance with the provisions of Para 13, Chapter 20 ibid;

    xxi) Payments on account of equity investment abroad by residents (such as establishment of subsidiary/ branch office abroad, payment of capital expenditure) in accordance with instructions stipulated in Para 13, Chapter 20 ibid.

  4. The revised para 40 is attached as Annexure A. Authorized Dealers are advised to bring these instructions to the knowledge of all their constituents and ensure meticulous compliance.

Encl: Annexure A


Yours truly,

-Sd-

(Dr. Asif Ali)
Director

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