In terms of FE Manual chapter XIX, Part B, authorized dealers may borrow short-term loans in the normal course of business from overseas branches or correspondents for period not exceeding seven days or arrange borrowing for less than one year obtaining special permission from the State Bank of Pakistan. The banks are required to report such inflows (disbursements) against purpose code 9522, outflows (principal repayment) against code 1528 and interest payments against code 1436 through International Transaction Reporting System (ITRS) to Statistics and Data Warehouse department of State Bank of Pakistan on monthly frequency.

It has been observed that some of the authorized dealers report rollover (non-funded transactions) of their short-term borrowings from abroad as outflows and inflows of funds that inflates the amount of short-term borrowing and repayment thereof unnecessarily.

The authorized dealers are therefore advised to report only funded transactions for disbursements and repayments of short-term bank borrowings through ITRS against specified codes. Further, banks are advised to report stocks of such borrowings on the template of foreign private loans available at link http://www.sbp.org.pk/departments/stats/private_loan.xls provided to them vide circular no. DS.PL.31.13/2008-772 dated April 08, 2008 and duly reconciled with ITRS reporting. However, banks are not required to report “Maturity Date”, “First Disbursement Date”, ”Total Loan Amount as per Agreement” and “Rate of Interest” on “Agreement Summary” sheet while they may generate a loan registration for each currency and lender to report under “Loan  Registration No (SBP/Authorized Dealers)”. The reporting on “Repayment Schedule” sheet of the template is also not required for short-term bank borrowing.

In case of any query, please contact Mr. Shafqat, Assistant Director on telephone # 021-32453679.