Foriegn Exchange Manual 2002
Foriegn Exchange Manual 2002
FOREIGN
EXCHANGE FOREIGN EXCHANGE MANUAL(2002)
MANUAL
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| Muhammad Shahbaz & Atif Saleem
Chapter 1
INTRODUCTION
Foreign Exchange Policy and its operations in Pakistan are formulated and regulated in accordance with the
provisions of the Foreign Exchange Regulation Act, 1947. The object of this Act is to regulate, in the economic
and financial interest of Pakistan, certain payments, dealings in foreign exchange, securities, import/export of
currency and bullion. Under the Act, the basic regulations are issued by the Government of Pakistan and the
State Bank in the form of Notifications which are published in the official Gazette.
For the purpose of securing compliance with the provisions of the Act and the Notifications and any rules,
orders or directions issued there under, the State Bank may, under sub-section of Section 20 of the Act, give
directions to Authorized Dealers, travel agents, carriers, stock-brokers and other persons who are authorized by
the State Bank to do anything in pursuance of the Act, in regard to making of payments and carrying out other
acts in the course of their business. Directions having general application are issued in the form of public
notices, F.E. circulars and circular letters etc.
█ Amendments
Changes in the regulations are generally advised by issue of F.E. circulars. The amendments are kept updated
and the old pages are regularly replaced by new pages whenever issued.
Under the Act, the State Bank is responsible for day to day administration of Foreign Exchange Policy which is
exercised through its Exchange Policy Department. The Principal Office of the Department is situated at Karachi
under the charge of a Directo
█ Authorized Dealers to notify the Regulations to their Customers and to report Cases of Evasion.
Authorized Dealers are required to bring the Foreign Exchange regulations to the notice of their customers and
to ensure compliance in their day to day operations. They should also report to the State Bank every case of
evasion or attempt, direct or indirect, at evasion of the provisions.
Authorized Dealers must submit to the State Bank returns of their dealings in foreign exchange on due dates in
the forms prescribed in the Manual.
█ Definitions.
A company registered in Pakistan which is controlled directly or indirectly by "person’s resident outside
Pakistan" For the purposes of Section 5 of the Act the term "persons resident outside Pakistan" also includes
nationals of Pakistan and persons domiciled in Pakistan, except persons holding office in the service of
Pakistan.
A resident person, bank or firm is a person who resides in Pakistan. A non-resident is a person, bank or firm,
who resides outside Pakistan. No definite rules can be laid down for determining whether a person is ordinarily
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resident in Pakistan but there is a presumption that a person is resident if he maintains a home in Pakistan, or
resides in the country for a substantial part of each year, or pays income tax as a resident of Pakistan.
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Ch apter 2
An authorization may authorize dealings in all foreign currencies or may be restricted to authorizing
dealings in specified foreign currencies and specified transaction only. Authorizations to deal in all
foreign currencies and in approved transactions of all descriptions are issued to those scheduled
banks which conduct all types of banking transactions. Authorizations limited to specified
transactions are issued to those Non-bank financial institutions which undertake limited banking
transactions.
Applications for grant of Authorized Dealer’s License should be made by the Head Office of the
bank/NBFI. The Director Exchange Policy Department, stating the nature of transactions that are
desired to be dealt with and it should be confirmed that trained staff and the required systems and
equipments to handle foreign currency transactions are available.
Once the Head Office/Principal Office of a bank or NBFI has obtained an authorization to deal in
foreign exchange, it would be free to decide the names of those of its branches, which would
conduct foreign exchange business. In case it is decided that a branch which was not previously
authorized to deal in foreign exchange, is to be allowed to start such business, its name and
address shall be communicated to the Director, Exchange Policy Department, who will allocate a
code number to the branch for statistical purpose.
Every Branch of a bank authorized to deal in foreign exchange and it can purchase foreign
currency notes, coins, traveler cheques and demand drafts. Such transactions should be reported
to a branch designated by its head office, the State Bank may, without assigning any reason, refuse
to grant an authorization to deal in foreign exchange
An Authorized Dealer can deal foreign currencies according to the instruction of SBP.
Application for grant of license to act as an AMC should be made to the area office of the Exchange
Policy Department where the applicant’s business is located. Applicant will be required to pay
application-processing fee (non-refundable) through pay order in favour of State Bank for grant of
fresh license and for renewal up to 30th June of each year. Fee for the purpose will be as under:
An applicant for grant of fresh license will also produce the following documents
• Police verification report to the effect that the applicant was not involved in any illegal
activities. However, this will not be applicable in case of existing Money Changers.
• Copies of National Identity Card and NTN Certificates of proprietor/partners/ directors.
• An applicant wishes to establish more than one branch, its net worth capital should not be
less than Rs 5 million, whereas in case of a single office it should not be less than Rs 2
million as per wealth statement filed with the Income Tax Department.
• AMC’s license shall be granted only to Pakistan nationals and resident Pakistani firms and
companies who are paying Income Tax. An applicant for more than one branch should be a
taxpayer of at least Rs 70,000/- per annum and for single branch licensers 25,000/- per
annum. Tax and bank loan defaulters will not be eligible for grant of license.
• Evidence to the effect that the applicant possesses a suitable business space built on an
area of not less than 10' x 10' in size in which no other business activity of whatsoever
nature will take place. Proper counter(s) shall be installed for public convenience. However,
this requirement will not be applicable for hotels, curio shops, and booths at
airports/departmental stores or where specially permitted by the State Bank on the merit of
each case.
• Evidence to the effect that the applicant has reasonable knowledge and experience in the
field of foreign exchange business.
• Applicant renewal the license two weeks ago before expiry date along Original AMC’s
License, fee and Tax Paid Challan/No Demand Certificate issued from Income Tax
Department.
█ Code of Conduct for Authorized Money Changers.
AMC’s activities will be restricted to purchase/sale of foreign currency notes/coins only. AMC’s
commercial name should not include words such as bank, financial institution, Investment
Company, trading company, real estate or any other word indicative of activities other than money
changing business. However, hotels, curio shops, departmental stores or any other premises
specially permitted by the State Bank can use their original name.
• AMCs shall maintain proper books of accounts and upon State Bank's directive provide all
data, information, books of accounts and other record relating to their business.
• Any change in the business premises/partners/directors of an AMC which has been granted
license will require prior approval of the State Bank.
• The name/title of the business shall be displayed clearly and in a bold face outside the
business premises.
• The business premises should be equipped with Telephone, Fax and Electronic Cash
Registers or some other electronic device for printing serially numbered receipts of their
sales/purchases transactions.
• AMCs will follow same opening hours as prescribed for the banks.
• AMCs will be free to trade between themselves domestically with proper accounting
procedure.
• AMCs will submit a weekly statement of sales and purchases, for weeks ending on 8th,
15th, 22nd and last day of each month to area office of the Exchange Policy Department
within 3 days.
• AMCs shall be bound by the rules and regulations prescribed by the State Bank from time to
time.
█ Inspection of Authorized Money Changers.
The State Bank shall have the right to visit the premises and inspect the records and books of
accounts of the AMCs. The State Bank may withdraw the license of any such AMC who:
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FOREIGN EXCHANGE MANUAL 6
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FOREIGN EXCHANGE MANUAL 7
Chapter 3
Authorized Dealers may enter into contracts for forward purchase or sale of foreign currencies
according to the regulations
In the case of export of goods from Pakistan against a firm contract, Authorized Dealers may
purchase foreign currencies forward for delivery up to six and a half months from the last date of
shipment as provided in the contract/EPC form/letter of credit.
• Authorized Dealers may sell foreign currencies forward in cover of imports into Pakistan
on cash basis under letters of credit or registered contracts.
• Forward cover facility will not be made available in respect of the following:
• Import of crude oil and POL products.
• Imports by Federal or Provincial Government Departments or Corporations set up by
Government and Industrial undertakings in which Government holds majority interest
other than TCP and those public sector undertakings which export part of their products.
• Sale of foreign exchange to overseas bank's branches and correspondents to cover
rupee bills negotiated by them.
█ Forward sale against investment by Non-Residents
• Authorized Dealers may sell foreign currencies forward to non-residents for portfolio
investment made by them in rupee denominated shares and securities on repatriation
basis out of funds remitted from abroad. A forward sale may also be made by an
Authorized Dealer other than the one maintaining the Special Convertible Rupee
Account.
• Authorized Dealers may freely enter into forward transactions with each other, provided
their ‘Exchange Exposure' at the end of the day remains within the prescribed limits.
• Authorized Dealers may enter into forward transactions with their overseas branches
and correspondents in respect of currencies other than U.S. Dollar, in cover of
transactions entered into by them with their customers.
• Authorized Dealers may provide forward cover to the Investment Banks, Leasing
Companies and Modaraba Companies holding restricted Authorized Dealer's Licences
issued by the State Bank of Pakistan.
• It would be permissible to extend the contracts on roll over basis even for less than one
month if the export proceeds have not been realized and extension in the period of
realization has been granted by the Authorized Dealer/State Bank.
• Discounting of usance export bills.
In case an exporter books forward cover and presents thereagainst an export bill drawn on usance
basis for discounting, the Authorized Dealer may treat discounting of the usance bill as delivery
against the forward contract provided such bills are presented for discounting during the option
delivery period only. In all other cases the foreign currency receipts in respect of discounted bills
will not be considered as delivery against forward contract and the Authorized Dealer will discount
the bill at its current applicable rate and close out the contract on maturity.
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FOREIGN EXCHANGE MANUAL 8
Forward contracts, which are not taken up, may be closed out on the date of maturity. In the case of
closure of forward exchange contracts, the difference between the booked forward rate excluding
the element of usance, if any, and the prevailing spot rate for the counter transaction on the day of
the maturity will be recoverable
SBP any time can cancel the contracts in any type dissatisfaction.
Persons maintaining foreign currency accounts with the Authorized Dealers in Pakistan can sell
forward the balances held in their accounts to the importers in connection with import letters of
credit/indents, proforma invoices, orders registered with the Authorized Dealers for imports on
consignment basis. The procedure to be followed in this regard is as under:
The importer and foreign currency account holder (hereinafter called the “seller”) will agree to the
deal under intimation to the Authorized Dealer. For smooth conduct of transaction, it is necessary
that the importer and seller are the customers of the same Authorized Dealer.
The seller will authorize the Authorized Dealer to mark a lien on the respective foreign currency
account to the extent of the amount involved.
The Authorized Dealer will make separate arrangement with the importer for recovery at the
opportune time of rupee equivalent at the forward rate agreed to between the importer and the
seller. As and when payment is required to be made for imports:
Chapter 4
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FOREIGN EXCHANGE MANUAL 9
Authorized Dealers are permitted to open and maintain accounts in all fully convertible currencies
with their branches and correspondents abroad according to the terms and conditions.
Foreign currency balances of Authorized Dealers, whether operated by their Head/Principal Offices
or branch offices, shall at all times be held at the disposal of the State Bank which may give such
directions for their disposal as it may consider necessary and expedient.
The State Bank fixes from time to time limits for foreign exchange exposure on overall basis for all
currencies for each bank authorized to deal in foreign exchange. These limits are intended to cover
the positions of all the branches in Pakistan of banks incorporated abroad, and all the branches,
including overseas branches, if any, of banks incorporated in Pakistan.
Authorized Dealers are required to report to the Exchange & Debt Management Department, State
Bank of Pakistan, all the foreign exchange transactions (ready, forward, take-ups, cancellation and
adjusting entries etc.) entered into by them with customers as well as with other Authorized Dealers
that create foreign exchange exposure in any currency, transacted during a day on floppy diskettes
using the software installed by SBP on each bank's computers.
• Authorized Dealers may freely purchase foreign currencies, as there are no restrictions on
inward remittances.
• Authorized Dealers may freely buy and sell foreign currencies from and to other Authorized
Dealers in Pakistan.
• The State Bank may, at its discretion, buy U.S. dollars from and sell to the Authorised
Dealers both ready and forward.
• Authorized Dealers may freely purchase both ready and forward one foreign currency against
another from their overseas branches and correspondents in order to cover their positions.
Chapter 5
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FOREIGN EXCHANGE MANUAL 10
Authorized Dealers may, without prior approval of the State Bank, open with them foreign currency
accounts of the following:
Under the State Bank’s forward cover scheme, the Authorized Dealers will fix their own rates of
interest for Term Deposits of 3 months, 6 months, 12 months, 2 years and 3 years provided they do
not exceed the average Bid rates provided by British Banker’s Association (BBA) for the concerned
currencies at the close of business on the previous working day plus the margins prescribed by the
State Bank from time to time
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FOREIGN EXCHANGE MANUAL 11
Authorized Dealers shall sell all the deposits in foreign currency accounts to the State Bank in
multiples of US$ 1,000/-, £ Stg.1,000/-, Euro 1,000/- and J. Yen 250,000/-. State Bank shall cover
exchange risk of all such deposits as well as interest accruing thereon at the option of the
Authorized Dealers, subject to payment of fee at the time of taking the forward cover at the rate
prescribed by the State Bank from time to time. In case of premature withdrawal of deposit, fee for
the unexpired period is refundable.
Authorized Dealers can accept foreign currency deposits from their overseas branches and foreign
banks operating abroad, including financial institutions owned by them, provided the amount and
period of maturity of such deposits is not less than those prescribed from time to time. Interest on
these foreign currency deposits can be paid by the Authorized Dealers annually, six monthly or
quarterly in accordance with the option exercised by the depositor in writing at the time of
placement of deposits. Interest can be paid at the rate not exceeding the prescribed margins over
Bid rate for the respective period as provided by the BBA at the close of business on the working
day immediately preceding the date of deposit as published by the Foreign Exchange Rates
Committee.
Where the interest paid on foreign currency Term Deposits of 3, 6 and 12 months on the basis of
BBA's bid rates as prescribed in the earlier paragraphs exceeds the return last allowed on similar
Rupee Accounts, State Bank shall reimburse the amount of differential on account of the excess to
the Authorized Dealers.
Special Foreign Currency Account in or outside Pakistan will be maintained for deposit of foreign
equity and foreign currency loan under the Loan Agreement registered with the State Bank. The
amounts available therein will be utilized for the purposes of the project.
Special Foreign Currency Insurance Account will be maintained for depositing amounts required for
payment of insurance/reinsurance premier and for receiving insurance/reinsurance claims against
covers taken in foreign currency outside Pakistan with the approval of the Controller of Insurance or
with State Bank’s approval from an insurer in Pakistan, provided that amounts not required for
meeting expenditure in foreign exchange will be repatriated to Pakistan and converted into rupees.
Off-Shore Foreign Currency Control Account will be maintained subject to the condition
that PPIB/Independent Engineer would determine for each project the portion of
revenues required to meet the foreign currency cost for operating the project.
Off-Shore Foreign Currency Operating Account will be maintained subject to the
condition that O&M expenses to be remitted/deposited periodically to this account will be
apportioned by the PPIB/Independent Engineer.
Off-Shore Disputed Payment Escrow Account will be maintained subject to the condition
that the balance will be remitted to Pakistan once the dispute is over.
Off-Shore Foreign Currency Debt Payment Account will be maintained for depositing the
amount required for Debt Service.
Off-Shore Debt Service Reserve Account will be maintained subject to the condition that
this account will be liquidated simultaneously with the retirement of debt and the
maximum balance in this account would not exceed the next 12 months Debt Service
Payment (both Principal and Interest).
Off-Shore Foreign Currency Maintenance Reserve Account will be opened and
maintained subject to the condition that this amount will be liquidated simultaneously
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FOREIGN EXCHANGE MANUAL 12
with the life of the agreement and that this account will hold the maximum of US$ 3
million during the term of Power Purchase Agreement.
Off-Shore Foreign Currency Dividend Account will be used for receiving remittance of
dividends as and when declared and paid by the company.
Foreign Oil/Mineral exploration companies and foreign contractors and their foreign sub-contractors
may be allowed by the Authorized Dealers to open foreign currency accounts according to term and
condition of SBP. Firms and companies raising foreign equity and foreign currency loan may be
allowed by Authorized Dealers to open special foreign currency account for receiving and retaining
the foreign funds on submission of information about the source of foreign funding and the amount
required to be retained in foreign currency.
Pakistan nationals resident in Pakistan are not permitted to open or maintain any foreign currency
accounts with banks etc., outside Pakistan. Reporting of local disbursements, interest from foreign
currency account is necessary to SBP.
In exercise of the powers conferred, the Government have issued notification on 17th
October, 1979 requiring all citizens of Pakistan and other persons residing in Pakistan continuously
for six months or more, who become the owner of any foreign exchange whether held in Pakistan or
abroad, to sell such foreign exchange to an Authorized Dealer within three months of the date of
acquisition by them of such foreign exchange. Foreign exchange held by residents in Pakistan in
countries other than Afghanistan, Bangladesh, India and Israel provided the amount does not
exceed in the aggregate U.S. $1000/-
Chapter 6
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FOREIGN EXCHANGE MANUAL 13
Rupee accounts of all banks' overseas branches or correspondents are treated as non-resident
accounts. The accounts of different branches of the same bank situated in different countries must
be identified separately and the accounts of each branch or group of branches in one country
should be designated as accounts of that country.
Authorized Dealers may open new non-resident Rupee accounts in the names of their overseas
branches or correspondents without the prior approval of the State Bank.
Drawings can be made on the non-resident Rupee accounts of overseas banks by their branches
and correspondents located in any other country irrespective of their monetary area.
Any payment for credit to non-resident Rupee account of any bank's overseas branch or
correspondent constitutes an outward remittance and is equivalent to a sale of the appropriate
foreign currency.
Payment in Rupees to the debit of non-resident Rupee accounts of banks' overseas branches and
correspondents constitutes an inward remittance and is equivalent to purchase of the appropriate
foreign currency.
Transfers between non-resident bank accounts may be freely allowed by the Authorized Dealers
irrespective of their monetary area.
Authorized Dealers may freely purchase foreign currencies from banks' overseas branches and
correspondents and credit the Rupee equivalent to their non-resident Rupee accounts.
Prior approval of the State Bank would be required for the sale of foreign currencies to non-resident
bank branches and correspondents against credit balance available in their non-resident Rupee
account.
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FOREIGN EXCHANGE MANUAL 14
Non-resident Exchange Companies may, in addition to opening a foreign currency account under
F.E. Circular No. 25 of 1998, open non-resident rupee account for the purpose of effecting payment
of remittances made by overseas Pakistanis.
Chapter 7
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FOREIGN EXCHANGE MANUAL 15
Accounts of individuals, firms or companies resident in countries outside Pakistan are designated
as non-resident accounts
There is no bar on non-residents maintaining accounts jointly with residents. These accounts should
be treated as non-resident accounts irrespective of the fact whether the accounts are to be
operated solely or jointly by the residents.
New non-resident accounts in the names of persons or firms or companies other than banks may be
opened without the prior approval of the State Bank where accounts are to be opened with funds
received from abroad through banking channel or with Rupee funds which have been accepted by
the State Bank for remittance abroad.
The accounts of all foreign nationals who are resident in Pakistan and the accounts of companies or
firms (other than banks) whose head offices or controlling interests are outside Pakistan but the
accounts are operated on by persons in Pakistan may be treated as resident accounts.
Not with standing the fact that a constituent has signed the Authorized Dealer must take all
reasonable steps to ensure that the constituent is not making foreign exchange available to any
person in Pakistan other than an Authorized Dealer against reimbursement in Rupees or is not by
any other means contravening the provisions. It shall be the responsibility of the Authorized Dealers
to bring to the notice of the State Bank immediately any such irregularities detected by them.
Unless it is prescribed otherwise by the State Bank in respect of any particular Rupee non-resident
account of persons, firms and companies other than banks, all operations on such accounts shall
be governed by the rules set out below
█ Debits:
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FOREIGN EXCHANGE MANUAL 16
• Receipts on account of salary, allowances, bonus, commission etc., directly from the
employers by cheque.
• Dividend and interest income on investment in shares and securities directly from the
company by cheque.
• Income from landed property and agricultural rent against identity of the depositor.
• Credits of remittances received from abroad through banking channel.
• Interest accrued on the amount lying in the non-resident account.
• Are fund of amounts previously debited or over-charged.
• Sale proceeds of landed property as evidenced from the registered sale deed.
• All other debits and credits require prior approval of the State Bank.
Chapter 8
BLOCKED ACCOUNT
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A blocked account means an account opened as a blocked account at any branch or office in
Pakistan of a bank authorized in this behalf by the State Bank or an account blocked by the order of
the State Bank.
• SBP has the authority to block the account of non resident in situation of dissatisfaction.
• Banks authorized to maintain Blocked Accounts.
• All Authorized Dealers in foreign exchange are permitted to maintain blocked accounts
according to instructions of NBP.
█ Opening of Blocked Accounts.
A blocked account may not be opened in the name of a resident of Pakistan unless it is held jointly
with a non-resident.
The State Bank may not approve certain remittances in settlement of liabilities to non-residents
under the current Foreign Exchange regulations. Payments in discharge of such liabilities to non-
residents can only be allowed to be made to blocked accounts.
Bank accounts and securities belonging to Pakistan and foreign nationals residing permanently in
Pakistan, who emigrate to foreign countries, should be treated as blocked. For blocking the
accounts and securities of intending emigrants the State Bank will issue necessary instructions to
their bankers. Some times Pakistan nationals who had gone abroad for purposes other than
'Migration', take up permanent residence in a foreign country. As and when such cases of their
clients come to the knowledge of Authorized Dealers, it will be their responsibility to report them to
the State Bank for instructions as to whether or not the bank account/securities of the person
concerned should be blocked.
The State Bank may issue special instructions regarding operations on individual blocked accounts.
In the absence of any such special instructions, no payments into or withdrawal from blocked
accounts may be made unless prior approval of the State Bank has been obtained.
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Chapter 9
█ Inward Remittances.
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The term 'inward remittance" means purchase of foreign currencies in whatever form and includes
not only remittances but also purchase of travellers cheques, drafts under travellers letters of
credit, bills of exchange, currency notes and coins etc.
There is no restriction on receipt of remittances from abroad either in foreign currency or by debit to
non-resident Rupee accounts of banks' overseas branches or correspondents. Authorized Dealers
may freely purchase T.Ts, M.Ts, drafts, bills etc., expressed and payable in foreign currencies or
drawn in Rupees on banks' non-resident Rupee accounts.
█ Outward Remittances.
The term "outward remittance" means sale of foreign exchange in any form and includes not only
remittances by T.Ts, M.Ts, drafts etc., but also sale of travellerscheques, traveller’s letters of credit,
foreign currency notes and coins etc.
Any person who wishes to purchase foreign exchange must lodge an application with an Authorized
Dealer on the appropriate prescribed form duly supported by the requisite documents. On receipt,
the application should be examined by the Authorized Dealer and if the Authorized Dealer is
satisfied that the application is covered by the regulations and it is empowered to approve the
remittance on behalf of the State Bank, it may affect the sale of foreign exchange. If the transaction
requires prior approval of the State Bank, the application should be forwarded by the Authorized
Dealer to the State Bank for consideration with comments under its stamp and signature.
█ Applications by Letters.
In some cases, applications are made by letters as it becomes difficult for the applicants to fully
describe on the prescribed application form the purpose of purchase of foreign exchange
particularly for travel abroad and for purposes other than import.
All applications for foreign exchange should be forwarded to the State Bank through Authorized
Dealers who should arrange their delivery to the State Bank through their own messengers or
through post.
Authorized Dealers should take all reasonable precautions to satisfy themselves as to the bonafides
of the applicants. They should verify that the application form has been duly completed and signed
by the applicant and then affix their stamp and signature thereon in token of their having examined
the application and of having satisfied themselves that to the best of their knowledge and belief, the
statements made in the form are correct and that full documentary evidence as required has been
submitted.
After receipt of approved forms or permits etc., from the State Bank, Authorized Dealers should see
that the forms etc., have been approved by the authorized officers of the State Bank and that they
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bear its embossing seal. Authorizations which are signed by officers whose specimen signatures
are not available with the Authorized Dealer, should be presented to the nearest office of the State
Bank for authentication. It is also important that once a form has been approved by or on behalf of
the State Bank, the Authorized Dealer should affect remittance only on behalf of the original
applicant for whom the form has been approved and in favour of the beneficiary whose name
appears in the approval.
• In the first type of permits, the State Bank authorizes remittances up to a stated amount
within a stated period which an Authorized Dealer may make on behalf of the permit
holder. Remittances under such permits may be made during the period of validity of
the permit in amounts as required by the applicant provided that the total of such
remittances under the permit does not exceed the overall limit laid down in the permit.
• The second type of permits covers remittances on a periodical (monthly) basis but the
periodical (monthly) limits are not cumulative and remittances in all during any one
period (month) must not exceed the prescribed rate laid down in the permit.
• The third type of permits allows remittances on a periodical (monthly) basis but the
periodical (monthly) amount is sanctioned on a cumulative basis so that unutilized
amounts for earlier periods (months) can be remitted in subsequent periods (months).
Unutilized amounts may, however, be accumulated only within the validity of the permit
and the entire unutilized balance of such permits will lapse after the last day of the
validity of the permit.
█ Period of validity of approval by the State Bank.
All Authorizations given by the State Bank are valid for a period not exceeding 30 days from the
date of approval unless they are expressly approved as valid for a specified longer period or unless
they have been revalidated for a further period. Similarly, permits issued by the State Bank are also
valid for specified periods as stated on the permit.
Foreign exchange is issued to the travellers against specific or general approval given by the State
Bank, a traveler desires to draw foreign exchange partly in foreign currency instruments and partly
in foreign currency notes.
█ Reporting of Remittances.
The remittances are approved by the State Bank, the approved forms should be submitted in
original. Where approval is given by the State Bank by letter or through issue of permit, particulars
of the letter or of the permit should be given on the appropriate form before submitting it to the
State Bank with the returns.
In the event of any outward remittance which has already been reported to the State Bank being
subsequently cancelled, either in full or in part, Authorized Dealers must report the cancellation of
the outward remittance as an inward remittance. The return in which the reversal of the transaction
is reported should be supported by a letter giving the following particulars:
The date of the return in which the outward remittance was reported.
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Where any foreign exchange is acquired by any person other than an Authorized Dealer for any
particular purpose or where any person has been permitted conditionally to acquire foreign
exchange, the said person will not use the foreign exchange so acquired otherwise than for that
purpose or fail.
Chapter 10
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Authorized Dealer’s license to deal in foreign exchange includes an authority to deal in foreign
currency notes and coins as well.BesidesAuthorised Dealers, the State Bank has granted
Authorized Money Changer’s Licences to Pakistan nationals and resident Pakistani firms/companies
to purchase and sell foreign currency notes and coins.
All incoming passengers, whether Pakistani or foreign can bring with them without any limit foreign
currency notes, coins and other instruments which should be freely purchased by the Authorized
Dealers against payment in Rupees. In all cases Authorized Dealers should issue a certificate of
encashment in the prescribed form and if so desired by the travellers, the purchase should be
endorsed on the traveller's passport. In cases where the foreign currency offered for sale by a
traveler had been originally obtained from an Authorized Dealer, the repurchase should be
endorsed on the traveller's passport in the case of Pakistan nationals only.
Authorized Dealers may also purchase foreign currency notes, coins and other instruments freely
from other Authorized Dealers and Money Changers.
Many countries have restrictions on import of their own currency notes and do not also allow their
repatriation through banking system. Surplus collection of such foreign currency notes can be
disposed of in the international centres at market rates. Authorized Dealers should arrange with
their overseas branches or correspondents to keep them fully informed of such restrictions on
import and repatriation as also about demonetisation, currency re-organization etc., in foreign
countries. Such information may also be passed on by the Authorized Dealers to those Authorized
Money Changers who are their customers.
Authorized Dealers may replenish their stocks of foreign currency notes for meeting the
requirements of their customers either by purchasing them from other Authorized Dealers or by
importing them from their overseas branches and correspondents.
█ Sale to Public.
Authorized Dealers may sell foreign currency notes and coins to persons proceeding abroad within
the amount of foreign exchange sanctioned by the State Bank or released by the Authorized
Dealers under the authority delegated to them.
Authorized Dealers may freely sell foreign currency notes and coins to other Authorized Dealers.
When Authorized Dealers are unable to dispose of their holdings of foreign currency notes by sale
to the public or other Authorized Dealers, they may dispatch such surpluses to their agents or
correspondents abroad for crediting their value to their foreign currency accounts
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CHAPTER 12
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EXPORTS
The prohibition does not apply to exports to Afghanistan, Iran by land route under special
arrangement and to the export of:
█ Registration of Exporters
Under the Registration (Importers and Exporters) Order, 1993, as amended from time to time, no
person can export any goods from Pakistan unless he is duly registered as an exporter with the
Export Promotion Bureau.
As required under the Federal Government Notification Nos.I(6)-ECS/48 and I(7)ECS/48 both dated
the 1st July, 1948 the exporters are required to declare their exports to the Customs/Postal
authorities in form 'E' (Appendix V-11).
• Full export value of goods exported from Pakistan and declared to the Custom
authorities should be received in an approved manner, as embodied in State Bank's
th
Notification No. F.E. 3/2001-SB dated the 28 September, 2001 on the due date for
payment or within six months from the date of shipment/posting, whichever is earlier,
or within a period as may be prescribed by the State Bank through specific or
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FOREIGN EXCHANGE MANUAL 25
It is permissible for exporters to retain the export proceeds including ‘Advance Payments’ in foreign
currency with an Authorized Dealer in Pakistan for three working days and to sell the same within
this period to any Authorized Dealer.
Authorized Dealers can also advise letters of credit or confirm arrangements and certify export
forms for exports by means of country-craft or motor-launch or truck subject to normal procedure
followed in case of exports.
Head/Principal Offices of Authorized Dealers are required to maintain a complete record of all
export forms printed by them and of their distribution to their branches and customers.
In exercise of the powers vested in it under Section 20(3) of the Act, all carriers whether common or
private (railway, steamship, motor trucking or airline companies) and their agents have been
directed by the State Bank.
█ Export of Software
The following procedure will be adopted for the export of computer software and realization of the
proceeds of such exports:
• The Software houses/companies will get themselves registered with the concerned
area office of the Exchange Policy Department.
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FOREIGN EXCHANGE MANUAL 26
█ Exports to Afghanistan
Exports to Afghanistan are not required to be declared on form ‘E’. In the case of any foreign
exchange becoming due to such exports, is required to repatriate the same to Pakistan and sell it to
an Authorized Dealer against payment in Pakistan currency.
All shipping documents covering goods exported from Pakistan and declared on Form 'E' must be
passed through the medium of an Authorized Dealer within 14 days from the date of shipment.
█ Scrutiny of Documents
the Authorized Dealers should compare the bills and/or documents with the relative export form and
satisfy themselves that they conform in all respects to the declarations made on the relative export
forms and the amount of the bills and invoices is not less than the value declared on them
In the case of commodities export of which is permissible only on receipt of advance payment or
irrevocable letter of credit, shipments will be allowed by the Customs only on the basis of the
certificate of the Authorized Dealer on the export forms to the effect that either advance payment or
irrevocable letter of credit has been received covering export of the goods mentioned on the export
form.
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FOREIGN EXCHANGE MANUAL 27
Authorized Dealers may negotiate/collect bills in the part amount provided they obtain an undertaking from the
exporters that they will realize the balance within the prescribed period.
When a part of the invoice value has been received in advance by the shippers, the Authorized
Dealers when negotiating/collecting documents for the balance should certify on the triplicate copy
of the export form that part of the amount had been received by them in advance quoting reference
to the return in which the receipt was reported.
In both the above cases the triplicate copy of the export form should be kept outstanding by the
Authorized Dealer and submitted to the State Bank only after the full value of the export has been
received.
█ Short Shipment
Where a portion of a consignment is short shipped and the exporter consequently draws a bill or
prepares an invoice for a quantity less than that declared on the relative export form, he should
produce a notice of short shipment on the prescribed form duly certified by the Customs alongwith
the shipping documents.
Where a shipment vessel is changed and export is done by another vessel, the exporter should
inform the Customs for permission to alter the name of the vessel for export and shipping bill.
Where a shipment is entirely shut-out and not reshipped immediately by another vessel, the
exporter should inform the Customs in the prescribed form in duplicate.
• If shipments from Pakistan are lost in transit for which payment has not already been
received, the Authorized Dealers must see that an insurance claim is made immediately
the loss is known.
• The Authorized Dealer should pursue the matter with the shipper and ensure that in
each case the exporter has received the insurance claim. The certificates of this should
be forwarded by the Authorized Dealer to the State Bank giving reference of relative
export forms.
Authorized Dealers should obtain a certificate in duplicate from the beneficiary on the Advance
Payment Voucher (Appendix V-18) declaring the particulars of the intended export, before
disbursing the amount to him. Both copies of the Advance Payment Voucher shall be authenticated
by the Authorized Dealer. The original shall be surrendered to State Bank with the relative Schedule
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FOREIGN EXCHANGE MANUAL 28
A-2, while the duplicate shall be returned to the exporter for production at the time of certification of
Form 'E'.
In case of payments received for export of fresh fruits/vegetables, it would be in order for the
Authorized Dealers to certify 'E' Forms against Advance Payment received, even if the detailed
particulars of the 'Goods', their 'Quality' and 'Invoice Value' have not been filled in, provided the
broad description i.e. ‘Fresh Fruits’, ‘Fresh Vegetables’, or ‘Fresh Fruits/Vegetables' is declared in
the relevant column.
In case where payment for goods to be exported is made out of foreign exchange, the following
procedure will be followed:-
Exporter will arrange the encashment of foreign exchange with a bank in Pakistan.
The Authorized Dealer while encashing foreign exchange will obtain an application from the foreign
buyer and get the ‘Advance Payment Voucher’ completed by the seller.
In case of exports on firm contract on D.A. or T.R. basis, Authorized Dealers, before certifying the
export form, should ensure that the foreign buyer is of sound financial standing and enjoys good
repute. Doubtful cases should be referred to the State Bank for instructions.
Sometimes exporters are required to produce to the Government Departments evidence of exports
and the realization of their proceeds. In such cases proceeds realization certificates may be issued
by the Authorized Dealers in the prescribed form (Appendix V-21) after getting them authenticated
by the State Bank.
In case of loss of original export realization certificate, the State Bank on application would
authorize issuance of duplicate thereof on the basis of undertaking given by the Authorized Dealer.
• Carrier companies will not accept payment of freight in Rupees on cargo shipped on
C&F or CIF basis unless the exporter produces to them a certificate from an Authorized
Dealer.
• Before issuing the above certificate, Authorized Dealer will invariably endorse the
relative 'E' form.
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FOREIGN EXCHANGE MANUAL 29
Export of gold jewellery/precious and semi-precious stones will be allowed in accordance with the
procedure notified by the Government of Pakistan and the instructions issued by the State Bank
from time to time.
█ Export of Services
Exporters of services such as Financial Services, Wholesale Distribution and Retail Trade,
Transportation, Storage and Communications, Tele-communication Services, Medical Services,
Educational Services, Engineering Services, Real Estate Development, Hotel and Tourism/Tourism
Related Services, Technical Testing Facilities and Consultancy Services etc. are authorized to
retain 35% of their net foreign exchange earnings in foreign currency accounts with Authorized
Dealers in Pakistan.
Those exporters who post at least 10% growth in their net foreign exchange earnings in terms of US
dollar over the last year’s export performance may be allowed by the State Bank to retain 50% of
their additional export earnings in their foreign currency account maintained with Authorized
Dealers in Pakistan.
CHAPTER 13
IMPORTS
Import can be done to any country except Israel or from any other country, which may be notified by
the Ministry of Commerce.
█ Registration of Importers
No person can import goods into Pakistan unless he is registered with the Export Promotion Bureau, under the
Registration (Importers and Exporters) Order, 1993 or exempted from the provisions of the said Order.
█ Classification of Imports
Before import a person should classified the goods which are going to import under import trade
control schedule. Otherwise have to pay penalty for this in convenience.
█ Terms of Import
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FOREIGN EXCHANGE MANUAL 30
imports can be made on FOB basis, CFR liner terms basis or CFR free out basis. However, prior
permission of the State Bank shall be obtained for import of sugar and food grains (cereals) on CFR
free out basis.
Payment for imports may be made either through letters of credit, without letters of credit against
documents received for collection on the basis of registration of contracts.
For this purpose, they should ensure that an invoice, order or indent has been issued by an
indentor duly registered as importer under Registration (Importers and Exporters) Order, 1993 and
it bears registration number of the indentor concerned. It is also permissible to open a letter of
credit on the basis of proforma invoice/order issued/accepted by the foreign supplier. Authorized
Dealers should also ensure that while opening letters of credit, full description of the goods to be
imported is given in each credit alongwith their prices.
• Letters of credit may be established providing for payment to beneficiary either in the
country of origin of goods or in the country of shipment of goods.
• Authorized Dealers may also establish letters of credit providing for payment to the
beneficiary in a third country.
• Authorized Dealers may also establish letters of credit providing for shipment of goods
of the origin of more than one country provided the beneficiary remains the same and
the shipment does not involve extra expenditure.
• Letters of credit established as per (i), (ii) and (iii) above should provide for payment in
any of the following manners:
a) in any foreign currency.
b) in Rupees for credit to the non-resident bank account of the country of
the beneficiary or of the country of origin/shipment of goods.
c) Through ACU Clearing Arrangement where letters of credit envisage
shipment directly from ACU member countries.
• Opening of letters of credit providing for payment in any other manner requires prior
approval of the State Bank.
• It is not permissible to establish letters of credit providing for alternate countries of origin
of goods unless prior approval of the State Bank is obtained.
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FOREIGN EXCHANGE MANUAL 31
All letters of credit and similar undertakings covering imports must provide for payment to be made
against full set of clean on board (shipped) bills of lading, air consignment notes, railway receipts,
post parcel receipts showing dispatch of goods to a place in Pakistan. Sea-way bills should not be
accepted.
█ Letters of Credit for Shipment by Country Craft, Motor Launch or Truck
Ordinarily it is not permissible to open letters of credit providing for shipment by means of country
craft, motor launch or truck except by well established and reputable firms in the private sector,
provided in the latter case the Authorized Dealers are satisfied about their financial and business
integrity in Pakistan.
if the importer wants to make the import on the basis of registration of contract without opening
letter of credit: -
• The importer will submit a copy of the contract/purchase order/proforma invoice/indent
etc.
• The Authorized Dealer registering the contract etc. will issue to the importer, a
registration certificate in the format appearing at Appendix V-25.
• In case the shipping documents are received by the importers directly, or by the
Authorized Dealer from the overseas supplier instead of the bankers of the suppliers,
remittance should be made in accordance with the instructions.
• Authorized Dealers will incorporate the figures of the contracts registered by them/
remittances made thereagainst in the statements as per appendices V-131, V-132 V-133
and V-134 (Para 15-Chapter XXII).
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FOREIGN EXCHANGE MANUAL 32
It will be subject to the condition that such letters of credit/contracts do not stipulate payment of any
amount by way of interest separately. The usance should commence from the date of issue of Bill of
Lading/Air Way Bill etc. or the acceptance of Bill of Exchange by the drawees as the case may be.
Authorized Dealers can make remittance of the following bank charges on account of imports.
Remittances of bank charges other than the items mentioned above in respect of imports will be
subject to the prior approval of the State Bank.
Authorized Dealers may make remittance not exceeding the value of such bills without the prior
permission of the State Bank if there are no restrictions in the import policy issued by Ministry of
Commerce.
The following procedure will be followed for imports on FOB basis in the private sector:
• The importers want to make imports on FOB basis get the letters of credit
opened/contracts to import, register through their bankers provided the importers fulfill
other instructions issued by the Government of Pakistan/State Bank about imports.
• The shipping/airlines will obviously issue Bills of Lading/Airways Bills in connection with
FOB imports on "Freight to Collect" basis.
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FOREIGN EXCHANGE MANUAL 33
• The importers will then pay the freight amount to carrier in PKR, he/she will also
surrender the "certificate" referred to in the preceding sub-Para to the concerned carrier.
• Airlines/shipping companies and their agents will not accept freight on FOB imports
without Authorized Dealers' certificate.
In the case of imports by the public sector on FOB basis the carriers should not accept freight in
Rupees without the approval of the State Bank.
As an exception, it will be in order for the carriers to accept freight in Rupees on account of F.O.B.
imports by the Ministry of Defence only subject to post-facto approval.
it will be in order for the PNSC and PIA to accept freight in Pak Rupees on FOB imports by the
Public Sector agencies.
Airlines/shipping companies can accept freight in Rupees up to Rs. 2,000/- per year per registered
importer for import of bonafide trade samples.
█ Advance Remittances
• In the case of import of books and subscription to journals and magazines etc., by
Government and Semi-Government agencies, Authorized Dealers may allow direct
advance remittance up to the amount of the relative letter of credit/contract.
• State Bank may consider applications for advance remittance against imports where the
goods are of a specialized or capital nature.
In all cases of remittances against import into Pakistan, the importers shall not use the foreign
exchange so acquired other than for that purpose.
█ Loss of Goods
In the event of total or partial loss of goods, it will be the responsibility of the importers to recover
claim from insurance company/shipping company/supplier, as the case may be.
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FOREIGN EXCHANGE MANUAL 34
The State Bank designates Authorized Dealers for handling imports under Foreign Loans/credits
and barter agreements including PL-480 programme.
In the case of US AID Loans, PL-480 and KFW (German) Loans, the State Bank designates
banks in U.S.A. and West Germany also for claiming payment or reimbursement from
the loan/aid giving agencies.
Authorized Dealers may recover from the importers, Their own commission at rates allowed by the
Banking Supervision Department from time to time, if applicable.
n respect of imports under Project loans, banks are also designated. Normally, Authorized Dealers are advised to
deliver shipping documents to the importing agencies free of payment
The procedures for obtaining reimbursement from the loan giving agencies are worked out on loan
to loan basis. Reimbursable loans and credits, imports are financed in the first instance from
Pakistan's own foreign exchange resources and reimbursement is obtained from the loan giving
agency.
█ Deposit of Counter-Part Rupee Funds with the State Bank in respect of Foreign
Non-Project Commodity Loans
The designated Authorized Dealers will observe the following procedure for deposit of counter-part
Rupee funds:
• Appropriate Rupee amounts in respect of imports under all foreign non-project
commodity loans and credits on non-reimbursable basis will be deposited with the
regional office/branch of the State Bank within three working days of the receipt of
documents by the designated banks in Pakistan or within 10 days from the date of
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FOREIGN EXCHANGE MANUAL 35
delay in depositing counterpart funds with the State Bank within the prescribed period, the
concerned Authorized Dealer will pay to the State Bank fine at the rate of Rs 4 per day per Rs
10,000 or part thereof for the period of delay.
█ Deposit of Funds Received under Reimbursable Loans/Credits.
In case of loans and credits on reimbursable basis, the designated banks are required to deposit
funds in the State Bank's Account with the Federal Reserve Bank, New York or with such other
banks as may be specified from time to time. The deposits should be made immediately on
reimbursement by the foreign loan/credit giving agencies but not later than the date following that
on which reimbursement is received.
CHAPTER 14
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FOREIGN EXCHANGE MANUAL 36
Shipping /airline companies may collect the charges in PKR without STATE BANK approval under
following conditions:
• Exports from Pakistan made on C&F/CIF basis against Form ‘E’ duly certified by
Authorized Dealers on their letterheads
• Imports into Pakistan on FOB basis.
• Freight on extra baggage more than the provisions.
• Freight on Export of Trade Sample and gift parcels.
• Passage money in accordance with the instructions.
In all other cases prior approval of State Bank should be obtained before collecting freight in
Rupees.
Foreign shipping companies / airlines, having an office in Pakistan, or not, cannot open PLS
accounts. They can open current accounts for keeping funds received from abroad and the amounts
of freight and passage collections, pending remittance to their head offices
Cargo Consolidators/Forwarders who are approved members of FIATA and registered with the
Board of Investment, Government of Pakistan as such, may accept freight in rupees without the
prior approval of the State Bank..
a) Authorized Dealers may allow remittance of surplus passage and freight collections of those
foreign airlines keeping their collections with them, on submission of application along with
the following documents: -
• A copy of F.P. Statement
• Import/Export freight manifests.
• A copy of each bill of lading/airway bill issued in respect of export on freight pre-paid
basis.
• Passage statement
• Statement of passage/freight bookings earlier made on credit now realized.
• Disbursement Statements.
• Cancellation/refund statement.
• Statement of outstanding passage/freight bookings on credit.
• Authenticated copy of the charter party if the vessel calling at the ports in Pakistan has
been chartered by the principals of the shipping agents in Pakistan.
• A copy of encashment certificate in respect of inward remittance.
• Auditors’ certificate showing payment of income tax, or exemption certificate given by
the Revenue authorities.
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FOREIGN EXCHANGE MANUAL 37
• In the case of agents, a copy of the valid permission letter given by the Board of
Investment for acting on behalf of the foreign principal.
b) No remittance is to be allowed in excess of the balance available in the account, as it is not
permissible to make remittances out of borrowed funds.
c) Any irregularity detected and advised by the State Bank shall be rectified by the concerned
airline/GSA/shipping company/agent within ninety days or the amount under objection will
be repatriated or adjusted from subsequent remittance, as applicable.
Pakistani shipping companies and airlines are required to submit to the State Bank a monthly
statement of their earnings and expenditure at foreign ports in the prescribed forms supported by
passage/freight manifest for receipts and by vouchers in respect of payments.
Persons or firms intending to hire on charter non-resident owned ships or aircrafts should
apply in the first instance to the Ministry of Communications for the charter of ships and
the Ministry of Defense for the charter of aircrafts.
█ Export Claims
• Quality claim.
• Amicable settlement
• (Commission (If not paid in terms of the authority delegated vide Chapter XII).
• Non fulfillment of export contract either in full or in part.
• Inspection fee, arbitration fee, survey and analysis fee, controlling fee, weighing charges
etc.
• Miscellaneous claims like refund of export duty etc.
• Loss in weight.
█ Guarantees for Payment of Claims
In case of export of cotton only, Authorized Dealers may extend guarantees in favor of overseas
importers for payment of claim.
Prior permission of the State Bank is required by persons or firms in Pakistan who wish to acquire
the services of agents abroad for any purpose other than export of goods from Pakistan, whether on
regular basis or otherwise.
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FOREIGN EXCHANGE MANUAL 38
• No technical fee shall be allowed for simple conventional process goods which are being
produced in the country without foreign technical collaboration.
• Remittance of the above mentioned services for the agriculture and food industry may
be allowed according to the following guidelines:-
• Initial lump sum fee/providing technical expertise/use of their brand name, should not
exceed US$ 100,000/- irrespective of the number of outlets under one franchise.
• A maximum of 5% remittance of net sales (excluding sales tax) in the food sector may
be allowed as Franchise Fee only for core items of the franchise and are the specialties
of the trade name.
• Initial period for which fees is to be allowed to projects in non-manufacturing sectors,
including international food chains, should not exceed 5 years
• Remittance of Royalty/Franchise and Technical Fees may be allowed by the Authorized
Dealer designated for the purpose, without the prior approval of the State Bank subject
to the following:-
b) Payment of income tax supported by a certificate from the auditors of the paying
firm.
• Foreign experts/technicians may be employed by the local firms in private sector without
requiring approval by any Government agency.
• (Authorized Dealers may allow remittances for foreign experts/technicians to foreign
firms or establish letters of credit available for payment of their service invoices/bills
duly certified by the employers in Pakistan.
• It will be responsibility of the Authorized Dealers to ensure that income tax has been
deducted from the amount payable to the foreign beneficiaries and paid to the income
tax authorities.
█ Remittances by Information Technology Sector
Remittances on account of items of the following nature may be allowed by the State Bank:
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FOREIGN EXCHANGE MANUAL 39
Authorized Dealers may effect remittances, without prior approval of the State Bank, at the request
of the publishers of Newspapers and Magazines of repute having large circulation or by local
agents of the foreign beneficiaries in Pakistan on account of News Feature Services, News Picture
Services, Syndication Services, Gambles, Comics, Puzzles, Book Reviews etc. published in
Pakistan Newspapers and Magazines.
Authorized Dealers may allow remittances as indicated above for advertisement charges payable by
exporters to newspapers, magazines, etc., abroad without the prior approval of the State Bank.
Authorized Dealers may, without prior approval of the State Bank, effect remittances to their
foreign correspondents etc., to cover payments due to them on account of bank charges, cost of
cables and other incidental charges arising in the normal course of authorized business other than
imports. All such remittances should be reported to the State Bank.
Authorized Dealers may allow remittances on account of fees for tender forms payable to
Government/Semi-Government agencies or a private company or a firm abroad without the prior
approval of the State Bank
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FOREIGN EXCHANGE MANUAL 40
█ Reporting of Remittances
Authorized Dealers may allow remittances covering fees etc., for registration of patents and
trademarks in foreign countries by firms/companies etc., in Pakistan without prior
approval of the State Bank.
All documents on the basis of which exchange facility is allowed by Authorized Dealers must
invariably be stamped to indicate that the remittance has been allowed against them.
CHAPTER 15
INSURANCE BUSINESS
█ General
Insurance companies whose branches and head offices set out abroad for foreign exchange
purpose have to follow the same regulations as in Pakistan.
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FOREIGN EXCHANGE MANUAL 41
Insurance policy in foreign currency may be issued to foreigners as well as Pakistani if he/she has
the foreigner domicile and premium paid by them in foreign currency.
If a Pakistani resident abroad or remittance from abroad must received the premier on its policy.
█ Assignment
A Pakistani cannot assign his/her policy to a non resident of Pakistan without the approval of
STATE BANK.
█ However, a foreigner can assign his/her policy to a non resident without the approval of
STATE BANK.
Maturity or surrender of rupee policy of a resident should be claimed in rupees only but in case of
foreigner remittance of maturity can be be paid in foreign currency with the approval of STATE
BANK’s priors.
Foreign currency policies held by foreigners can be paid in foreign currency with the approval of
STATE BANK’s priors.
█ Export of Policies
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FOREIGN EXCHANGE MANUAL 42
A policy cannot be export without the approval of STATE BANK’s priors with the reasons of
exporting on policy.
Normally in such cases, the policy holders will be required to repatriate the surrender value of the
policy to Pakistan. However, in cases where the policy is to mature within one year or so, the State
Bank will consider allowing remittance of premier subject to the condition that the proceeds of the
policy on maturity will be received in Pakistan through banking channel. Application for the purpose
should be made in the prescribed form (Appendix V-52).
Exports from Pakistan will be insured by companies operating in Pakistan and exports should be
taken under C.I.F basis if goods shipped under FOB or C&F than goods will be insured by foreign
buyers.
It is compulsory to insure the imports by the insurance companies operating in Pakistan if imports
taken place under C & F or FOB.
• Insurance cover on non-marine risks (excluding life) inside Pakistan can be issued in
Rupees only.
• Insurance cover on assets outside Pakistan owned by residents of Pakistan can be
issued in Rupees or in the currency of the country in which the assets are situated.
• In cases where foreign currency policies are issued to foreign nationals, premier thereon can be
collected in foreign exchange only.
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FOREIGN EXCHANGE MANUAL 43
Premia on policies issued in Rupees to non-residents can be collected by remittance from the
country in which the policy holder is resident or out of Rupees held in his non-resident account.
Insurers are not permitted to accept payments in Rupees from resident sources.
In respect of foreign nationals residing abroad, the premier can be collected only through a
remittance from abroad. As regards Pakistan nationals holding foreign currency policies, premier
can be collected in foreign exchange only as laid down in paragraph 4 ibid.
Claims on Rupee policies can be paid in Rupees only even in cases where the beneficiary is a non-
resident.
Claims arising under Foreign Currency policies covering imports under Aid/Loan can be paid by
National Insurance Company Limited (NICL) without the prior approval of the State Bank of
Pakistan in foreign currency for the replacement of goods damaged or lost in transit.
• To a non resident claim will be in foreign currency with the approval of STATE BANK’s
priors.
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FOREIGN EXCHANGE MANUAL 44
• To a non resident claim can be in foreign currency by giving the all reasons why he/she
requires claim in foreign currency to the STATE BANK’s priors.
Application for remittance of claim under (I) and (ii) above should be made on Form 'M'
accompanied by the prescribed declaration (Appendix V-53).
█ Reinsurance Business
Exchange facilities for Reinsurance will be only those insurance companies whose branches and
offices are working in Pakistan, not to the employees of the nonresident companies.
█ Reinsurance – Life
Remittance of reinsurance premier both under treaty and facultative cover arising from the life
insurance policies is not permissible except in the following cases:
• Reinsurance premier on policies issued and reinsured on or after 25th May, 1973 for
sums over Rs. 3.5 lacs in respect of death risk only.
Remittances in respect of (a) and (b) above will be allowed by the State Bank in accordance
with the procedure set out in the following paragraph No. 24.
█ Remittance under Reinsurance Business
Permission may be given by the Authorized Dealers for remittances in respect of reinsurance
business effected with or accepted from non-resident companies on the insurance companies
submitting to them the following information and documents. Remittances in respect of life re-
insurance business will, in addition, be subject to conditions laid down in the preceding paragraph
23:
c) Certificate from the Controller of Insurance to the effect that the local market has been
fully utilized before placing any part of the risk outside the country facultatively.
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FOREIGN EXCHANGE MANUAL 45
c) Proceeds Certificate in case any amount of claim has been received in cash and the
same is being accounted for through the statement of account.
These documents will be submitted to the State Bank with the monthly Returns.
Retention of foreign currency received by Pakistani insurance companies is not permissible except
with the special permission of the State Bank.
To facilitate settlements of local branches of overseas insurance companies are allowed to transfer
their surplus funds on quarterly, semiannually or annual basis. Companies wishing to transfer
surplus funds should make an application to the State Bank, through the Authorized Dealer
maintaining their account, on Form 'M' supported by (i) a no objection certificate from the Controller
of Insurance, (ii) a declaration and statement in the prescribed forms (Appendices V-56 and V-57)
signed by the manager or an authorized officer of the remitting branch holding power of attorney,
and (iii) other requisite documents.
CHAPTER 16
PRIVATE REMITTANCES
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FOREIGN EXCHANGE MANUAL 46
Requests for remittance of assets received by the Authorized Dealers from foreign nationals (other
than Indian nationals), foreign born wives of Pakistan nationals, persons of Indo-Pakistan origin
holding foreign passports and stateless refugees, retiring permanently from Pakistan to their
country of permanent domicile or to another country should be referred to the State Bank in the
prescribed form (Appendix V-58) along with Form 'M' and other supporting documents.
• In respect of foreign nationals employed in the private sector, a certified true copy of
the service contract and approval letter from the Board of Investment/work permit/work
visa if applicable under the government’s Investment Policy.
• In respect of persons employed in the public sector, a certified true copy of their
contracts with the employing agency.
• In the case of self-employed persons carrying on their business or profession in
Pakistan e.g. doctors, lawyers, architects, consultants etc., a certified true copy of the
permission letter of the Board of Investment. Where a foreign national has been carrying
on his business or profession in Pakistan prior to 3rd October, 1963, the permission
letter will not be necessary. To this effect, suitable evidence will have to be produced by
the applicant to the State Bank.
N.B: The above certificate should cover the period of employment not exceeding ten years
counting from the date of retirement from Pakistan.
Where any of the above payments is not covered by the relative service contract, a certified
copy of the resolution of the Board of Directors of the company or special sanction of the public
sector agency, as the case may be, will be necessary.
• A statement of bank account for the preceding two years prior to the date of the
application.
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FOREIGN EXCHANGE MANUAL 47
• Bank certificate showing separately the total amount of remittances made on account of
(a) family maintenance (b) leave salary and (c) other miscellaneous purposes for the
preceding two years.
• Statement of sale proceeds realized in respect of locally purchased articles.
• A Statement of sale proceeds of articles imported by the applicant from abroad.
• (Authorized Dealer's certificate showing the amount invested and the amount realized
from the sale of investments, where the applicant had made investment in N.I.T. Units or
other Government Securities for availing of income tax relief.
• Sale of imported vehicles
Foreign officials working on Pakistan can sell their imported vehicles in Pakistan and remittance of
their proceeds will be considered under STATE BANK’s regulations.
█ Legacies and other Distributions of Assets from the Estate of Deceased Persons
STATE BANK will consider the application of remittance of legacies and other distributions from
estates of deceased persons due to beneficiaries’ resident outside Pakistan.
And any amount which is not permitted to remit to the nonresident outside Pakistan will be credited
to a blocked account in the name of executor or administrator within a bank in Pakistan
Foreign nationals, who are resident in and have income in Pakistan, are permitted to make
remittances to the country of their domicile out of their current savings, to cover their commitments
for family expenses.
However, this facility is not available for Indians, Afghans and foreign born wives of
Pakistan nationals.
█ Issue of Permits
• Permits for monthly remittances may be issued by the Authorized Dealers, without the
prior approval of the State Bank, to foreign nationals other than those who are:
a) Self-employed, or
b) Employed in Merchant Navy, or
c) Of Indo-Pak origin.
• Permits will be issued on receipt of declaration from foreign nationals in the prescribed
form (Appendix V-59) in duplicate and subject to fulfillment of the following conditions:
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FOREIGN EXCHANGE MANUAL 48
(c) The pay cheque of the applicant is received directly by the Authorized Dealer from the
employer for credit to his individual account.
• Permits to eligible applicants will be issued by the Authorized Dealers on a yearly basis.
These permits will be non-cumulative. It will, however, be in order for the Authorized
Dealers to affect remittance of accumulated amounts up to a maximum of two months.
Remittance of accumulations in excess of two months will require prior approval of the
State Bank. The amount remitted each month should be endorsed on the application and
after the last remittance is made, the same should be surrendered to the State Bank.
• Authorized Dealers will keep proper record of these remittances, as this information is
needed by the State Bank, when foreign nationals apply for remittance of their savings,
on their retirement from Pakistan.
• The original copies of all declaration forms (Appendix V-59) will be sent to the State
Bank after affecting the last remittance. Authorized Dealers must, however, ensure that
all expired permits are invariably sent to the State Bank promptly.
Applications for issue of monthly remittance permits from foreign nationals employed by Pakistan
Merchant Navy and from persons of Indo-Pakistan origin holding foreign passports should be
forwarded to the State Bank duly supported by necessary documents.
Diplomatic Missions accredited to Pakistan and their employees and foreigners are permitted to
maintain two accounts.
It will be in order for Authorized Dealers to allow transfer of funds to their convertible Rupee
account from the official Rupee accounts of the United Nations Organizations.
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FOREIGN EXCHANGE MANUAL 49
A dealer can issue the traveler cheque to a foreigner holding family maintained permit or his/her
family member from his/her remittance entitlements of that month with the evidence provided by
his/her ticket showing the date of departure from Pakistan within the two weeks of issuance of
traveler cheque.
Authorized dealer may allow the remittance without the approval of STATE BANK for the purchasing
of above mentioned goods.
Authorized Dealers may approve applications on Form ‘M’ up to an amount prescribed in the Import
Policy (currently US$ 5,000 per person during fiscal year 2001-2002) to import any importable item
or item by actual user on providing the following documents:
Authorized Dealers may approve applications on Form 'M' covering subscriptions or membership
fees at actuals to bonafide scientific, technical, professional and educational institutions abroad.
The applications should contain the following particulars:
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FOREIGN EXCHANGE MANUAL 50
█ Correspondence Courses
Authorized Dealers may approve remittances for payment of fee for correspondence courses in
actuarial science and for those other courses which prepare students for examinations conducted in
Pakistan by professional institutions of repute abroad like ICWA etc. Applications for the purpose
should be made on Form 'M' duly supported by a declaration in the prescribed form (Appendix V-61)
and the demand note received from abroad.
Authorized Dealers may allow remittances on account of fees to be paid by students to foreign
professional/educational institutions for appearing in the examinations conducted by such
institutions in Pakistan.
Applications for remittances by private individuals for purposes other than those mentioned above
should be made to the State Bank on Form 'M'. Details of the purpose of the remittance should be
stated in full on Form 'M' and appropriate documentary evidence in support of the application
attached thereto.
Authorized dealer should advised to make the satisfaction that provided information is correct and
tell the foreigner future intention for stay in Pakistan and his/her monthly remittance on
his/her(dealer) behalf to the STATE BANK.
While reporting to the State Bank remittances allowed by them under the general authority
delegated to them in this chapter in their monthly exchange returns, the Authorized Dealers will
bunch Forms 'M' under each category separately along with the prescribed supporting documents in
each case on the basis of which the remittances in question have been effected.
Each bunch of Forms 'M' with the relative documents must have a covering statement in duplicate
as per proforma given below:-
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FOREIGN EXCHANGE MANUAL 51
Amount remitted
Sl. Name of the Name & address of Equivalent in
in foreign
No. remitter. beneficiary. Rupees.
exchange.
Before forwarding the prescribed documents to the State Bank along with the covering statements
referred to above, the Authorized Dealers should see that these are invariably branded with an
appropriate stamp indicating that remittances there against have already been effected.
CHAPTER 17
TRAVEL
█ General.
This chapter sets out the rules in accordance with which the Airlines/Shipping Companies/Travel
Agents may sell tickets and Authorized Dealers may release foreign exchange for travel abroad.
STATE BANK will entertain such a application with the Form "P" or "P-2" (Appendices V-62 and V-
63 and for release of foreign exchange on Form T-1 (Appendix V-64) from the following only:
• Applicants themselves.
• Authorized representatives of Airlines/Shipping Companies.
• Authorized representatives of such travel agencies/general sales agents licensed by the
Government under the Travel Agencies Act, 1976 and Overseas Employment Promoters
licensed by the Bureau of Emigration, which are recognized by the State Bank for the
purpose.
• Authorized representatives of the Authorized Dealers.
█ Applications for grant of State Bank’s recognition
Applications for grant of recognition for the purpose of Para 2 (iii) above should be made to the
State Bank through the bankers of the applicants.
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FOREIGN EXCHANGE MANUAL 52
b) Ticket may be sell to any Pakistani crew member on the basis of certificate
from the Shipping Master and a certificate from the local agents of the
foreign ship owners. The local agent's certificate alongwith the Shipping
Master's Office certificate should be submitted with the monthly "Return of
Passage Bookings (Appendix V-37)".
• REBATED TICKETS
a) Rebated/free tickets may be issued by the company without the approval of
STATE BANK.
b) Travel against 100% rebated tickets on the inaugural flights may be issued
without any annual limit of the company.
c) Companies are authorized to issue 100% rebated tickets to the employees of
other airline/shipping companies travelling on officials duty. In such cases the
Airlines/Shipping Companies should attach a certificate indicating the name
of Airline/Shipping Company on whose official business the employee
concerned has travelled.
█ Travel by non-resident Pakistan nationals
• Companies may issue the tickets to a Pakistani student studying abroad on his return for
holidays or due to other reasons with the approvals of guardians/parents.
o On the completation of study one way passage should be issued within the 6 months of
completation of studies.
• Pakistani doing job abroad and going back accompying his/her family may purchase
ticket from any crrier.
• Pakistani along his /her family abroad coming back may purchase the ticket from any
carier with foreign exchange for short visit.
• Pakistani pakistani holding foreign passport may be sold one-way ticket for their return
journey to their country of residence.
• Wives wishing to join their husbands working in Saudi Arabia, Egypt, Sudan, Djibouti,
Somalia, Ethiopia, Kenya, Syria, Turkey and Greece.
• Children wishing to join such parents who are working in the above countries.
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FOREIGN EXCHANGE MANUAL 53
Companies are not allowed to issue the ticket to any person between 10 SHAWAL to 10 ZILHAJJ
except the above persons for travelling to Saudi Arabia or near countries.
In the following condition s companies are allowed to issue the ticks to foreigners with the approval
of STATE BANK.
█ Travel to Afghanistan
Ticket may be issued for inward/outward travel without the approval of STATE BANK.
Ticket may be issued by authorized person to a foreigner or Pakistani settled abroad or his/her stay
there is not less than 6 months.
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FOREIGN EXCHANGE MANUAL 54
In all cases other than those specified in previous paragraphs Airlines/Travel Agents/Shipping
Companies should not book passages unless State Bank's approval on Form 'P' / 'P-2' is produced
to them. Passages booked against State Bank's approval on Form 'P'/'P-2' should provide for travel
within 3 months from the date of approval in respect of journeys originating from Pakistan.
█ Issue of Tickets
• Companies can book the tickets’ against payment in rupees with the direct rule
otherwise with the approval of STATE BANK’s priors.
• Ticket issued for outward travel from Pakistan indicates that departure should be in 3
months from the date of issuance of ticket.
• An agent can change the date of departure up to one month from the original date of
departure.
• Airlines and Travel Agents should make the following endorsements on tickets issued to
passengers travelling within Pakistan or to Afghanistan:
(a) For transportation within Pakistan: - "Valid for transportation within Pakistan
only".
(b) For transportation to Afghanistan for which approval on form 'P' is not necessary:
- "Destination not changeable".
• Airlines/Shipping Companies/Travel Agents, while issuing tickets, will endorse the
passport of the passenger in the following manner under their proper authentication and
stamp:
(a) Ticket of.............................. (Name of carrier) for .............................. issued
(destination) on .............................. for.............................. (Purpose of visit)
(b) In case where tickets/PTAS are received from abroad, the endorsement on the
passports should be made by the carrier concerned in the following manner:
Companies are permitted to refund the tickets wholly or partly used without the approval of STATE
BANK.
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FOREIGN EXCHANGE MANUAL 55
• Travel between two points outside Pakistan except where a point of travel involved is in
India or Bangladesh, and
• Return journey portion of a ticket originally issued for two way travel.
█ Wholly used tickets
• Where the carriers have satisfied themselves by examination of relative documents that
the ticket holder has not drawn any foreign exchange.
• Where the foreign exchange drawn by the ticket holder has been surrendered to an
Authorized Dealer.
█ No refunds Outside Pakistan
All types of tickets are not refunded in any other form which can be used for travelling.e.g; first
class ticket cannot be converted in economy class without the approval of STATE BANK.
(a) Passport.
(c) Ticket
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FOREIGN EXCHANGE MANUAL 56
• In the case of travel by land route, Authorized Dealers may release private travel
exchange quota subject to entitlement on submission of "T-1" form, passport, National
Identity Card and visa.
• No foreign exchange will be made available by Authorized Dealers for travel to
Afghanistan.
• Authorized Dealers will keep Photostat copies of the following documents in their record
and present the same to the Inspection Teams of the State Bank.
a. Pages 1, 2 and 3 with inside title page and that page of the passport on
which endorsement of release of foreign exchange is made
b. First coupon of air/steamer ticket.
c. Visa
The instructions contained in paragraphs 4, 9, 17, 18 and 25 will apply. However, tickets will be
issued and foreign exchange released on submission of relevant order of the competent authority
sanctioning leave ex-Pakistan, in addition to other prescribed documents. Before releasing PTEQ
in such cases Authorized Dealers should ensure that it is clearly indicated in the Leave Order that
the traveler has not been allowed to draw leave salary / pension in foreign exchange.
Unspent amount of foreign exchange brought back by a traveler out of the 'PTEQ' drawn by him and
surrendered to an Authorized Dealer can be re-issued to him for subsequent travel abroad within
the approved limits.
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FOREIGN EXCHANGE MANUAL 57
Persons proceeding abroad to attend international conferences, symposia, seminars, meetings etc.,
in their private capacity and journalists travelling abroad to cover journalists events etc., will be
allowed foreign exchange by the State Bank at the rate of US$60/- per head per day subject to a
maximum of US$1,000/- per head for countries other than India, Bangladesh and Afghanistan. In
case of persons proceeding for these purposes to India and Bangladesh foreign exchange will be
allowed by the State Bank at the rate of US$40 per day subject to a maximum of US$600/-.
Authorized Dealers may release foreign exchange on the following scales to persons sponsored by
their respective institutions/organizations in the private sector for professional training abroad on
submission of the prescribed Application Form (Appendix V-66) by the employing
institutions/organizations:
Foreign exchange approval is required for the treatment abroad if the patient is desire to increase
PTEQ.
These persons can draw the daily allowances in addition to the US $100 per day. But cannot draw
his/her salary or pension abroad except he/she goes abroad on leave or after retirement.
█ Migration
Persons proceeding on migration abroad will be allowed by the State Bank a foreign exchange
quota of US$50/- per head against sponsored migration visa and US$500/- per family against non-
sponsored visa. Migrants to USA/Canada against non-sponsored visa will be allowed a compulsory
minimum quota of US$260/- per family. They may at their option also obtain additional exchange
quota up to US$500/- inclusive of the compulsory quota. Application for the purpose should be
made on the prescribed form (Appendix V-69).
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FOREIGN EXCHANGE MANUAL 58
Persons proceeding abroad on business visits are allowed exchange facility at the rate of US$300/-
per day subject to a maximum of US$9000/- per person for countries other than India and
Afghanistan.
For India business travel quota is allowed @ US $40/- per day subject to a maximum of US$1,200
/- per person.
Companies may issue tickets and release foreign exchange at the rate specified in Para 28
ibid without prior approval of the State Bank in accordance with the following
instructions in cases where business visit to countries other than Afghanistan is
recommended by the Federation of Chamber of Commerce and Industry or by a
Chamber of Commerce/Trade Organization listed in Appendix V-70.
Companies may issue the tickets to above mentioned organizations at specified rate without
the approval of STATE BANK according to the paragraph 28 if the bid bonds are
accepted by the foreigner beneficiaries.
Following facilities are provided to the registered Pakistani exporters participating in International
fairs/exhibitions when they approached:
Applications for this purpose should be made to the State Bank on Form "T" (Appendix V-74). At the
time of forwarding such applications, which should be duly completed, Authorized Dealers should
ensure that the requisite documents including a Confidential Report on the financial standing of the
party are enclosed with the application.
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FOREIGN EXCHANGE MANUAL 59
• STATE BANK gives the blanket permission if the export earnings for the preceding year
for the commodities is more than 2.5 million and for the service sector earning is more
than .25 millions.
• State Bank will issue blanket permission on the original 'BT' form, which will be valid for a
period of one year only. Only two representatives of the export houses/firms/companies
can travel at a time against the blanket permission provided both of them are not
travelling in one and the same direction and their destinations are distinctly separate.
█ Booking of passage against blanket permission
Companies issue the tickets to the person named in the blanket permission issued by the STATE
BANK.
The aforesaid copy of the blanket permission shall be certified by the Airlines / Travel Agents in the
following manner :-
Authorized Dealers may release foreign exchange at the rates prescribed in Para 28 of this chapter
on the strength of the following documents:
And the issuer should make the endorsement on the face of blanket permission in the
following format:
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FOREIGN EXCHANGE MANUAL 60
Authorized Dealers may release foreign exchange without the prior approval of the State Bank to
students desirous of studying abroad. It will, however, be ensured by the Authorized Dealers that no
foreign exchange for studies abroad is released to a student whose financier/guardian/parents
is/are residing and earning abroad.
Students will fill in the prescribed Application Form (Appendix V-78) in triplicate and present
it to their bankers alongwith their passports and the following documents in original together with 3
sets of photo copies thereof:
(c) Letter of admission from educational institution abroad indicating nature of course and its
duration or Form I-20 in the case of studies in U.S.A.
(d) Letter from the educational institution abroad showing break-up of the expenses like tuition
fee, cost of books and other fees etc. payable to the institution and estimated living expenses.
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FOREIGN EXCHANGE MANUAL 61
• Courses of study and educational institutions which qualify for exchange facility for
studies abroad.
Amounts of foreign exchange in excess of the limits on payments for invisibles specified in
paragraph 17 to 40 shall be released by the Authorized Dealers after prior verification of submitted
documentary evidence demonstrating that the additional amount is needed in order to make a
bonafide payment for purposes specified in the aforementioned paragraphs under advice to the
Exchange Policy Department, Central Directorate, Karachi.
It can be reconverted into foreign exchange with the authorized dealer without limit and approval of
STATE BANK.
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FOREIGN EXCHANGE MANUAL 62
Exchange granted for travel purposes should be issued only in the form of travellers cheques or
circular letters of credit or in foreign currency notes or coins. It may be issued in the form of T.T. or
M.T. also or Draft but in such cases, it should be expressly provided that payment by the drawer
bank shall be made only on the personal application and identification of the traveler.
The balance amount of admissible quota will be released in the shape of travellers cheques duly
branded with rubber stamp as stipulated in the preceding sub-Para.
A traveler can spent the foreign exchange only for the purpose of travelling and living and exchange
the foreign money with the authorized dealer as soon as he return to Pakistan.
The Government of Pakistan announces each year the scale on which foreign exchange will be
released to intending pilgrims to Saudi Arabia. Foreign exchange may be released by the
designated Authorized Dealers to intending pilgrims in the form and on the scales and in
accordance with the special instructions and conditions laid down by the Government for different
categories of pilgrims.
Pakistani Families living abroad can exchange the money in foreign exchange for the personal
reasons by submitting the following documents:
• Application from Pakistan national resident in Pakistan indicating the purpose for which
the family went abroad and the reason for its continued residence abroad and the
probable period of stay abroad.
• A certificate from Pakistan Embassy/High Commission in the concerned country
confirming the reason of stay abroad of the family, expected period of stay, the number
of persons in the family and the amount required per month for maintenance. The
certificate should confirm that the concerned persons hold Pakistani passports.
CHAPTER 18
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FOREIGN EXCHANGE MANUAL 63
█ General
In exercise of the powers conferred by sub-section (1) of Section 8 of the Act, the Federal Government
has issued Notification No.F1(8)/EF/49 dated the 2nd May, 1949 and No.1(2)ECS/48 dated the 1st July,
1948 as amended by Notification No.1(14)-EF/49 dated 5th November, 1949, prohibiting the bringing or
sending into Pakistan from any place outside Pakistan, of Pakistan and foreign currency notes or bank
notes, un-issued or in circulation, or coin, except with the general or special permission of the State Bank.
Traveler to Pakistan can bring with them RS 500/- and Rs 3000/- from India and from any other respectively
at one time by one person.
Travelers to Pakistan can bring with them the foreign currency without limit except coin which is legal tender
in India, which can be brought only up to Rs.5/- in value per person at any one time.
Nobody can send more than Rs 500/- and 3000/- to India and other than India respectively.
Any body can bring the money in the safes of vessels or aircraft with the permission of STATE BANK.
Rs 500/- and RS 300/- which are permitted to take with them while going abroad are not for the expenditures
oat abroad those are for the travel expenses when they will come back to Pakistan.
No resistriction on the import of foreign exchange instruments by personally or post or otherwise. Such
restriction applies only to foreign currency notes and coin in respect of which Para 4 ibid may be referred.
In pursuance of sub-section (2) of Section 8 of the Act, the State Bank has issued Notification No. F.E.2/98-
SB dated July 21st, 1998 granting general permission to: -
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FOREIGN EXCHANGE MANUAL 64
• Any one except to whom foreign exchange is issued for travelling purpose only to send out of
Pakistan.
• Any one to whom foreign exchange is issued by authorized dealer and imposed on his passport.
• Any foreigner who bring with him foreign currency and stay in Pakistan not more than three
months, and
• US$ 10,000/- or equivalent thereof in other foreign currencies.
The terms "jewellery" and "precious stones" are deemed to include all articles made wholly or mainly of gold,
platinum, diamonds of all kinds, precious or semi-precious stones, pearls whether or not mounted, set or
strung and articles set or mounted with diamonds, precious or semi-precious stones or pearls.
There is no resistriction on the import of jawellary and precious stone but under the regulated under Import
Trade Control Regulation. And these items bring by passengers under Custom Act.
It is prohibited but with the special permission of STATE BANK. Under this permission any person at any one
time can take out articles of stones and jawellary except wholly or generally made of gold as under
a) India. Nil.
b) (b) Afghanistan, Bangladesh and Iran. up to Rs.1,000/- in value
c) (c) Any other country or place not up to Rs.2,000/- in value
No person is allowed to take with him/her jawellary or stones to India without the permission of STATE
BANK.
• Any foreigner can bring out these items with him/her which he/she bring with him while coming
to Pakistan and declared to custom authorities.adn wholly are generally made of gold articles
which he/she purchased in Pakistan up to Rs 10000/- and Foreign nationals and overseas
Pakistanis can also take out gold, jewellery, up to the value of $10,000/- in all provided the same
have been purchased against encashment of foreign exchange brought by them from abroad.
• To take out the jawellary and precious stone above the limit described above to India or other
country an application should be made to STATE BANK for granting the permission. STATE
BANK in return issue the license according to which he/she have to bring back the jawellary and
precious stone article up to the mentioned date in license in Pakistan and the original license
have to submit to Custom authorities on the time of departure and keep the copy of the license
which will be shown to STATE BANK at return as a proof of bringing back the permitted items.
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FOREIGN EXCHANGE MANUAL 65
'Gold' as defined in Section 2 of the Act includes gold in the form of coin, whether legal tender or not, or in
the form of bullion or ingot, whether refined or not. 'Silver' means silver bullion or ingot, silver sheets and
plates which have undergone no process of manufacture subsequent to rolling and uncurrent silver coin
which is not legal tender in Pakistan or elsewhere.
Import of gold and silver is prohibited, except with the authorization or special permission of STATE BANK
from anywhere else Pakistan.
Import of gold and silver into Pakistan is, therefore, subject to State Bank's authorization.
• Import is permitted against the export of gold silver jewellery and cut and polished
precious/semi-precious stones in accordance with the procedure notified by the Government of
Pakistan and the instructions issued by the State Bank from time to time.
• th
The State Bank vides its Notification No. F.E.1/94-SB dated the 20 March, 1994 has granted
general permission for import of gold into Pakistan from any place outside Pakistan
as accompanied baggage provided such imports are made in accordance with the existing
import policy.
STATE BANK does not allow exporting gold from Pakistan except with their special permission.
There is non resistriction on the export of silver but he/she have to repatriated the export proceed with in the
stipulated period.
Outgoing passenger must have to declared the custom department at the time of departure from Pakistan
about jawellary and precious stone in a prescribed declaration Form 'CD'.
This form is available by ticket issuer and passengers have to fill it while buying the ticket and bring it with
them to the custom lounge at the time of departure.
CHAPTER19
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FOREIGN EXCHANGE MANUAL 66
In case of equal shares company will be Pakistan controlled if chief excusive is resident of Pakistan.
█ General permission for lending to Foreign Controlled Companies for working capital
Authorized dealers are permitted to give the rupee loan or credit to foreign controlled under the banking
companies ordinance to meet the working capital needs.
Foreign controlled companies have to borrow money from abroad for capital expenditure with the permission
of STATE BANK. in special conditions they are permitted to rise loan by medium and long term local loans,
while if a company is engaged in manufactured industry, it can take loan by bank, financial institutions or by
issuing participation term certificates etc.
Authorized dealer can give the loan up to the two month salary of the foreigners. to get above this he/she
have to get permission by STATE BANK.
Authorized dealers are permitted to give loans to foreign controlled companies on receiving guarantee from
non resident or bank functioning abroad.
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FOREIGN EXCHANGE MANUAL 67
a) Authorized dealers may give the loan to Pakistanis resident out side Pakistan if they maintain
foreign currency account.
b) Authorized dealers or financial institutions may borrow the money to Pakistanis resident outside
for purchasing the plot f, flat or house unto the 90% of the price of plot/flat/house without the
permission of STATE BANK if the liquidation of the loan will be made by foreign currency
through normal banking channel.intial down payment of 10% will be made by him/herself in
PKR.
a) Loan is given to those non resident Pakistanis who have no immoveable property
out side Pakistan.
b) Sake proceeds is not allowed to convert in foreign currency account/ rupees
convertible account of buyer/salver.
c) Loans will be extended by the banks/DFIs/Housing Finance Institutions subject to
observation of the normal rules and Prudential Regulations.
Companies are prohibited to take loan from abroad without the permission of STATE BANK and it will not be
guaranteed bevy government and such a loan will not less than for the five year time period.
Any company working in Pakistan can negotiate for the foreign currency loan to import the machinery for the
purpose to export. This machinery can be use to expand the existing business or new business from scratch.
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FOREIGN EXCHANGE MANUAL 68
consignment, submit to the area office of Exchange Policy Department through the designated
Authorized Dealer, the relative import documents viz. Exchange Control copy of Bill of Entry,
original invoice and a copy of letter of credit.
• For the repayment purpose repayment schedule should be submitted for registration to the
Investment Division, Exchange Policy Department, at Karachi in sextuplicate through the
Authorized Dealer which has submitted the loan agreement.
In case any discrepancy is found in the information contained in an application (V- 84 ) or export realization
certificate (V- 85) on the basis of which an Authorized Dealer has allowed remittance of principal and
interest, the applicant will be required to arrange for repatriation to Pakistan of the amount, if any, remitted in
excess or alternatively on demand by the State Bank, pay to it on account of the Federal Government
penalty amounting to 27% of Rupee equivalent of the excess remittance plus interest thereon @ 9% per
annum from the date of remittance. The Authorized Dealer who has allowed the remittance shall be
responsible for compliance with the above requirements including payment of penalty and interest.
The penalty of 27% recoverable from the applicants under the above Scheme should be deposited with the
State Bank by the concerned project or its bankers on challans filled in quadruplicate for credit to Federal
Government's account with the State Bank under the head "1000 Non-Tax Receipts1300 Miscellaneous
Receipts-1390 others-Fees, Fines and Forfeitures".
• Fter the repayment schedule submission the remittance on account of principal, interest and
other charges will be allowed by the Authorized Dealers strictly in accordance with the approved
schedule.
• In cases where intrest rate vary with LIBOR. . It would be in order for the Authorized Dealers to
remit the actual amount of interest calculated on the basis of the formula appearing in the
approved contract.
• Time period of repayment of such a loan should not axceed 12 months and intrest rate should
not exceed more than 1% from the LIBOR.
• With the acceptance of foreign bank/financial instuition the concerned company may contract the
loan and repatriate the amount for credit to their Rupee account with the Authorized Dealer.
• Branches in Pakistan of foreign companies are not allowed to pay interest on such loans.
• Foreign contractors are not allowed to pay interest on such loans, and they can repay the loans
only after they have completed the contracted work/project and have submitted clearance
certificate from the tax authorities, which should be attached with the Form ‘M’.
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FOREIGN EXCHANGE MANUAL 69
• Exporter can attain the foreign currency loan up to the limit of export which he/she is going to
made when he/she have valid firm commitments with the overseas buyers for export of goods
from Pakistan.
• It can be negotiated for intrest rate and time period should not more than sixty days from the
repatriation of export proceeds.
• Exporter can not gain the export finance in local currency from a bank in Pakistan.
• Foreign currency account opened temporarily for this purpose is closed on the complete
payment of loan.
• Not with standing the utilization of export proceeds for repayment of the loan, the Authorized
Dealers will continue to be liable to deduct income tax as required by the Tax laws
• If exporter is fail to repay the loan, exporter should have to repay the loan by his/her own
resources.
Pakistani firms and companies functioning in Pakistan excluding banks may obtain foreign private loans on
non-repatriable or repatriable basis for their working capital subject to the following terms and conditions:
a) NON-REPATRIABLE BASIS:
such loans would be treated as rupee loans to the extent of rupees generated out of the
inward remittance, neither the principal nor interest/profit would be remittable abroad at
any time and repayment of the loan and payment of interest/profit would be made in
Pakistan.
b) REPATRIABLE BASIS:
• The loan is interest free and for a period not less than one year.
• No bank guarantee for securing such loans would be provided from Pakistan.
• No forward cover shall be provided.
• The Government of Pakistan will not provide the facility of absorption of exchange risk
in such cases.
Authorized Dealers may, if it becomes necessary in the normal course of their business but not for the
purpose of carrying speculative exchange position etc., obtain short-term loans and overdrafts from overseas
branches and correspondents for periods not exceeding seven days at a time.
Interest on short-term loans and overdrafts taken under this Para may be remitted by Authorized Dealers
without the prior approval of the State Bank.
It is not permissible for Authorized Dealers to obtain long-term loans in foreign currencies without the prior
approval of the State Bank
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FOREIGN EXCHANGE MANUAL 70
Authorized Dealers will not grant any loans or overdrafts in foreign currencies, whether secured or
unsecured, without the prior approval of the State Bank. Applications for this purpose should be made by
letter, giving full details of the purpose for which such loans or overdrafts are required as also the particulars
of the guarantee or collateral, if any, and the manner in which the loans or overdrafts are expected to be
liquidated.
Authorized Dealers may issue such guarantees on behalf of foreign controlled companies only by adjustment
of the amount from their borrowing entitlement as per Prudential Regulations. the validity of the guarantee
would be restricted to the period up to which decision about acceptance or rejection of the relative tender is
taken. The State Bank's prior approval will become necessary if the guarantee is to remain valid even after
the decision on the tender has been taken.
With the permission of STATE BANK an authorized dealer should have to provide the all the necessary
information about the contract ,for the renewal of guarantee all the particulars should be state the extent up
to which the facilities covered by the guarantees were utilized during the previous twelve months or during
the validity of the guarantees etc., if the period involved is less than 12 months
Applications for this purpose should be made by letter giving full particulars with the permission of
STATE BANK.
The Renewal of such guarantees also requires the prior permission of the State Bank.
may issue Performance or Bid Bond Guarantees on behalf of exporters, members of recognized
Consultancy/Construction Associations and Companies approved by Pakistan Engineering Council (PEC) in
Pakistan .Authorized Dealers, National Insurance Company Limited, Pakistan Insurance Corporation and
those Insurance Companies whose exposure limits have been fixed by the Controller of Insurance for the
above purpose
An authorized dealer may give the gasuruntee in the favour of non resident on the behalf of its customer in
the ordinary course of their business in respect of missing documents, authentication of signatures, release
of goods on Trust Receipts and defects in documents negotiated by them under letters of credit etc.
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It cannot be done without the approval of STATE BANK. All applications for this purpose should be made to
the State Bank by letter giving full details of the guarantees or collaterals, as the case may be, and of the
transaction in cover of which guarantee is proposed to be given or collaterals deposited.
For all the above purposes prior approval of STATE BANK is required.
CHAPTER 20
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SECURITIES
█ Definitions
Section 2 of the Act defines "security" as shares, stocks, bonds, debentures, debenture stock
Government securities as defined in the Securities Act, 1920, deposit receipts in respect of deposit of
securities and units or sub-units of unit trusts but do not include bills of exchange or promissory notes other
than Government promissory notes.
A "foreign security" is defined as a security issued elsewhere than in Pakistan and any security the principal
of or interest on which is payable in any foreign currency or elsewhere than in Pakistan.
For the purpose of Section 13 of the Act, the term "security" also includes coupons or warrants representing
dividends or interest and life or endowment insurance policies.
█ Import of Securities
Securities cannot be export without the permission of STATE BANK. For this purpose he/she have to apply
through an authorized dealer to STATE BANK and an Authorized Dealer who should give an undertaking
that the securities will be received back in Pakistan within a specified period or in the case of sale, the sale
proceeds in foreign currency will be repatriated to Pakistan.
For this purpose too, prior permission of STAE BANK is required through an authorized dealer..
It is not possible without the permission of STATE BANK and prohibitation applies to transfer of :
█ General Exemption
• ISSUE PRICE OR PURCHASE PRICE is paid in foreign exchange through normal banking
channel by remittance from abroad or foreign currency account maintain in Pakistan. except the
issuance of bonus share and transfer of shares.
• The purchase price should not less than the stated quoted price on the stock of the country.
A)
A non resident of Pakistan
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Issue of shares including Modaraba Certificates/Trust and Fund Units out of new public offers,
irrespective of the nature of business of the company.
Transfer of shares quoted on Stock Exchanges of the country, irrespective of the nature of
business of the company.
Transfer of Pakistani securities held by a “ person resident outside Pakistan” on repatriable basis
to other eligible ‘persons resident outside Pakistan’ on the same basis against payment outside
Pakistan, provided a certificate to this effect is given by the transferee to the company
concerned.
Issue of rights shares and bonus shares in all those cases where shares are held on repatriable
basis by ‘persons resident outside Pakistan’ in accordance with the general or special
permission of the State Bank.
Issue of Government securities to persons mentioned in sub-Para (A) (III).
Issue of NIT Units to persons mentioned in sub Para (A) (I, II & III).
• Companies issuing shares out of new public offers on repatriable basis, as permitted under sub
Para (B) (I) of preceding paragraph 6, may open foreign currency collection accounts with
banks abroad or in Pakistan for receiving the subscription in foreign currency. They may also
allow refunds from these accounts to unsuccessful applicants. The amount subscribed by the
successful applicants should be repatriated to Pakistan and foreign currency accounts closed
within a week of allotment of shares.
• Collection of subscribed share money in PKR can be at by company’s rupee account by
concerned Authorized Dealer.
• In case issuance of shares to non resident in exchange of machinery or plant can be done by
providing all documents to area office of foreign exchange department. Once the Exchange
Entitlement Certificate has been issued by the State Bank, the company may issue the shares
up to the value mentioned in the Certificate to the non-resident sponsors.
• If a foreigner pay in foreign currency for equity it will be remain in foreign currency accent
opened with authorized dealer in Pakistan, The company may issue shares after receipt of
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money in its account for the equivalent Rupee amount at the exchange rate shown in the
Certificate.
• At the request of company, STATE BANK permitted an authorized dealer to remit the dividend to
a non resident subscriber.
• The shares issued/transferred to non resident shareholders shall be intimated by the company
to the designated Authorized Dealer within 30 days of issue/transfer.
Dividend, net of applicable taxes, as permitted under Chapter XIV.
Disinvestment proceeds not exceeding the market value (in case of listed securities)/break up
value (in case of unlisted securities) less brokerage/commission on submission of:
a) Name and address of the non-resident share holder.
b) Name and address of the company whose shares were sold by the non-resident beneficiary,
indicating whether it is a listed or unlisted/private limited company.
c) Name, address and residential status of the buyer of the shares in question.
d) Copy of broker’s memo in case of quoted shares/break up value certificate of a practicing
Chartered Accountant in case of unlisted shares.
The dealers should have to maintain the record of all subscribers which will be audited by inspectors of
STATE BANK. This record can be destroyed after the inspection of STATE BANK and devolving the copy of
audit.
█ Issue of Securities and NIT Units to Persons Resident outside Pakistan on non-
repatriation basis and its transfer on the same basis
• It is permitted to issue the securities including NIT Units excluding un registered shares to non
resident Pakistani, on non repatriation basis, if it is issued on Pakistan address and no
repatriation of capital, dividend/profit accruing thereon will be claimed.
• A person resident outside Pakistan holding shares on non- repatriation basis may also be issued
bonus/right shares as per his entitlement, on the basis of non-repatriation of capital and
dividend.
• Non-residents are allowed to trade freely in the shares quoted on the Stock Exchanges in
Pakistan.
• The commission earned by the international brokers from their overseas clients and credited net
of taxes to the broker’s SCRA account may be remitted by the Authorized Dealers provided the
funds so credited have emanated from inward remittances or paid out of SCRA of the investor.
• Trading of Federal Investment Bonds, Pakistan Investment Bonds, Treasury Bills, Registered
Corporate Debt Instruments and WAPDA’s Registered Bonds listed with Stock Exchange in the
Secondary Market.
It is permitted to trade freely these accounts if the relevant S.R.Os permit non-residents to hold the bonds in
the secondary market, through Special Convertible Rupee Accounts subject to the instructions applicable to
these accounts
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█ Special Instructions regarding shares transferred under Central Depository System (CDS)
of Central Depository Companies
the company concerned will ensure that the shares are already registered in its record on
repatriation basis in the name of the non-resident concerned. If the shares are not already so
registered, the company will obtain requisite documents issued in the name of investor
concerned, i.e., broker’s memo, proceeds realization certificates (PRCs) for cost of shares
purchased and transfer stamp duty, or where the shares have been purchased from another
non-resident shareholder against payment outside Pakistan, the transferee’s certificate
alongwith PRC for transfer stamp duty.
CDC will issue to the respective company a list of beneficial non-resident shareholders certifying their
individual holding as on Ex-date of dividend/bonus/right in the form appearing at Appendix V-93. Before
issue of dividend warrant or allotment of bonus/right shares,
the company will verify the holding of non-residents not involving SCRAs from its record
including those as mentioned in sub-Para (iii) (b) and for the non-residents investing through
SCRAs,
These institutions are allowed to invest in PKR registered listed corporate debt instruments issued in
Pakistan in primary and secondary markets. further that investment in such debts which convertible in
securities does not exceed 30% of the paid-up capital of the issuing company or 30% of the paid-up capital
and reserves of the investing institution, which ever is less.
Clauses (c) and (d) of sub-section (1) of Section 13 of the Act prohibit, respectively, transfers of securities
from registers in Pakistan to registers outside Pakistan and the issuing, whether in Pakistan or elsewhere, of
securities which are registered or to be registered in Pakistan, to "persons resident outside Pakistan" except
with the general or special permission of the State Bank.
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Residents of Pakistan including firms and companies incorporated in Pakistan were allowed vide FE Circular
No. 66 of 1993, to make investment in companies incorporated abroad on repatriable basis through Foreign
Exchange Bearer Certificates (FEBCs) subject to the conditions laid down in the circular.
all persons resident in Pakistan who are or become the owners of any security in respect of which the
principal, interest or dividends is or are payable in the currency of any foreign country or in respect of which
the owner has the option to acquire the payment of principal, interest or dividends in such currencies, to
make a return to the State Bank within one month of their acquiring the securities, giving particulars in
respect of the said securities. Foreign nationals residing in Pakistan are not required to submit the above
returns
Underwriting of shares, participation term certificates etc., by foreign banks’ branches in Pakistan eventually
involves holding of those shares/securities which are not taken up by the general public, and as such attracts
the provisions of Section 13(1) of the Foreign Exchange Regulation Act, 1947. Foreign banks’ branches in
Pakistan have general permission to under-write the issue of shares to the extent of 30% of the public
offering or 30% of its own paid-up capital and reserves, whichever is less. They are also permitted to under-
write public issues of participation term certificates, term finance certificates and modaraba certificates,
provided that where the terms and conditions of issue of such securities grant an option to the holders to
convert the securities into ordinary shares, the restrictions of 30% as mentioned above would apply.
CHAPTER 21
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All Pakistanis and others residing in Pakistan for continuous 6 month and hold the foreign exchange, he/she
should have to sell such foreign exchange to an authorized dealer within 3 months of acquisition.
Indenting Houses/Tour Operators and Trade Marks/Patent Agents and Attorneys are required to file with the
State Bank, the following documents/ information in respect of their foreign exchange earnings:
• Indenting Houses/Agents
Half yearly statement of their commission earnings in foreign exchange in the prescribed form (Appendix V-
97) as on 30th June and 31st December each year along with a copy of each agency agreement entered
into by them with foreign suppliers. This statement is required to be submitted only by those Indenting
Houses / Agents whose indenting income exceeds US $ 100,000/-, and should reach the State Bank within
two months after each half year.
• Tour Operators
a) They have to submit the half year statement to STATE BANK within the two months of half year showing the
earning in foreign exchange from foreign tourists.
b) A certified copy of each agency agreement entered into with foreign tour operators and airlines etc.
c) above are allowed to retain up to 35% of their net foreign exchange earnings in foreign currency accounts
• Trade Marks/Patent Agents and Attorneys.
a) Half yearly statement in the prescribed form (Appendix V- 99) showing the foreign exchange received by
them on account of Government fees and their own professional charges. The statement should show the
position as of 30th June and 31st December each year and reach the State Bank within two months after
each half year.
b) A certified copy of the agreement entered into by them with foreign clients.
█ Submission of Encashment Certificates
Encashment certificates from Authorized Dealers in support of foreign exchange received from abroad and
shown in the half yearly statements mentioned in paragraph 2 should invariably be enclosed with the relative
statement.
CHAPTER 22
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█ Maintenance of Record.
Dealers should have to maintain the proper record of all the transactions in foreign exchange and of the
foreigners.
Dealers should have to complete with care the returns/statements that all the transactions are correct and
duly reported to the STATE BANK on due date.
a) For export
• Export bills drawn on collection basis.
• Export bills drawn under irrevocable letters of credit.
b) For import
• In case of import bills drawn under letters of credit, the foreign currency accounts of the
Authorized Dealers are debited at the time of negotiation of documents by their foreign
correspondents.
• All sales on account of imports are required to be supported by the original copy of the Form ‘I’.
In view of the time-lag between the date of receipt of the import bills and the date of their
retirement by the importers,
• Authorized Dealers will forward to the State Bank a monthly statement showing particulars of the
Form ‘I’ originals which is not sent by them to the State Bank, should give the reasons for their
non-submission. These statements should reach the State Bank by the 7th of the following
month and should bear running serial numbers.
• With regard to import bills received on collection basis, the transactions will be reported on
Schedule E-2 supported by original Form ‘I’.
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Authorized dealers should submit to STATE BANK the summarized statement of their transaction in
each currency in which a position is maintained by them and also summary statement of transactions
effected on the Rupee accounts of non-resident banks maintained with them for each month, reaching the
respective area office of the Exchange Policy Department by the 3rd of the following month from branches
and by the 10th from Head/Principal Offices of Authorized Dealers.
• Each summarized statement will be an abstract of the Authorized Dealer's ledger account and
will consist of totals under specified heads.
• Authorized Dealers will complete one "S-4" statement for each period in which consolidated
figures of all non-resident bank accounts maintained with them will be given.
• The Head/Principal Offices of the designated banks maintaining the barter accounts will
incorporate their branch transactions against the respective heads provided in the summary
statement
In the case of exports under barter arrangements, Authorized Dealers should affix rubber stamp on
the relative Form 'E' with the following narration: -
The branches of the designated banks shall submit the relative forms and schedules alongwith "S-5"
statement to the area offices of the Exchange Policy Department.
Each and every statement must be accompanied by schedules and the relative forms as indicated in the
summarized statements to support the details of the totals entered in the summarized statements.
Separate schedule should be used for each loan or credit. The name of the loan should be clearly described
on the schedule in the space provided therefore.
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The opening and closing balances are to be taken from the currency accounts in the books of the Authorized
Dealer. The abbreviations "Cr." or "Dr." on the summarized statements are used to show credit and debit.
from the Authorized Dealer's balance, the balances of customer's foreign currency accounts should be
excluded.
Authorized Dealers must not include their holdings of foreign currency notes in the balances reported on the
"S-1" statement and they are to omit their transactions in currency notes completely except where such
transactions result directly in entries in their currency accounts. Authorized dealers should report to STATE
BANK about his/her sale and purchase of foreign currency notes and this report send in duplicate duly
supported with relative schedules/forms.
Authorized Dealers must submit on Schedule "K" a return of operations on private non-resident Rupee
accounts on quarterly basis reaching the area office of the Exchange Policy Department on 12th April, 12th
July, 12th October & 12th January. Total amounts of debits and credits given on Schedule "K" must agree
with the aggregate amounts of Forms A-7 enclosed with the schedule.
• Authorized Dealers are required to maintain record of their exchange position in each currency in
which they maintain an account as at the close of business in the prescribed form (Appendix V-
130).
• the Authorized Dealers should refer the matter to the State Bank, if there is any difficulty any
more.
Authorized Dealers are required to submit to the State Bank fortnightly statements of outstanding
commitments against cash resources in the prescribed forms as on 15th and last day of each month
reaching the Joint Director (General), Exchange Policy Department, State Bank of Pakistan, Central
Directorate, Karachi by the 22nd and 7th showing breakdown of figures with month-wise maturity thereof
classified allocation-wise as under:
(i) Specific allocation.
(ii) Private Sector imports.
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