990625

Circular Letter No. 19/FEP-6(1)P-99
25th June, 1999.

Head offices of Authorized Dealers in Foreign Exchange

Dear Sirs,
RELEASE OF FOREIGN EXCHANGE FOR TRAVEL ABROAD

It has been observed that as the difference between interbank rate and free market rate widens there is a tendency of abuse of private travel exchange quota. The Authorized Dealers have time and again been advised that private travel quota in released in case of genuine travel only. In this regard their attention is invited to our F.E. Circular Nos. 15 and Nos. 5 dated the 1st June, 1998 and 2nd April, 1999. Further, Head Offices of the Authorized Dealers are advised to ensure that the instructions contained in our aforesaid circulars and those laid down in Chapter XVII of the Foreign Exchange Manual are strictly followed by their branches while issuing private travel exchange quota.

2. Additionally, it has been decided that effective from July 1, 1999 the Head Offices will submit daily position of private travel exchange quota released by all their authorized branches in the annexed format duly signed by a Senior Officer. The statement of sales made by all the authorized branches on a date should reach the Foreign Exchange Department within three working days. Before submitting the statement to the Foreign Exchange Department, State Bank of Pakistan, Central Directorate, Karachi (Fax No. 9212527), Head offices will undertake scrutiny of the statement themselves. In case they notice any irregularity or any unusually large sales by any branch, they should initiate a detailed investigation for taking action against officials at fault.

3. The State Bank intends to inspect branches of banks authorized to release travel quota. In case irregularities are detected the State Bank intends to take strong action under FER Act, 1947 and Banking Companies Ordinance, 1962 not only against the bank but also against the officials involved in the irregularity.

Please acknowledge receipt.

Yours faithfully,

(MUHAMMAD MAHMOOD AHMAD)
Additional Director

NAME OF BANK:____________________________________
STATEMENT SHOWING DETAILS OF PTEQ RELEASED ON: (Date)