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38. Combination of two exchange facilities.
Authorised Dealers should not release foreign exchange for two different purposes at a time. In other words combination of two exchange facilities is not allowed.

39. Foreign Exchange facilities for studies abroad.
Authorised Dealers may release foreign exchange without the prior approval of the State Bank to students desirous of studying abroad in accordance with the procedure set out below. It will, however, be ensured by the Authorised Dealers that no foreign exchange for studies abroad is released to a student whose financier/guardian/parents is/are residing and earning abroad.

(I) Procedure to apply for release of exchange for studies 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:
(a) National Identity Card, if over 18 years of age.
(b) Certificate of academic qualification.
(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.
(e) Evidence of scholarship/assistantship, if any, which the student will be receiving.

(II) Courses of study and educational institutions which qualify for exchange facility for studies abroad.
Authorised Dealers will scrutinize the Student Application Form in the light of the following rules in order to determine whether the course of study proposed to be undertaken by the student and the educational institution in which admission has been secured, qualify for foreign exchange facility for studies abroad: -
(a) Diploma or under-graduate studies in all subjects.
Exchange facility for studies at diploma or under-graduate level is permitted in all subjects in any university/institution abroad. Minimum educational qualification for the purpose is Matriculation or as acceptable to the university / institution abroad where admission is desired to be obtained.

(b) Post-graduate studies.
Exchange facility for post-graduate studies is permitted in technical as well as general fields only to graduates in first and second divisions. The field of post-graduate study should be in line with the subjects in which the students have graduated.

(c) Studies in U.S.A.
Exchange facility for undertaking approved studies as mentioned at (a) and (b) above in U.S.A.  is allowed only when admission is taken in an accredited institution as listed in the booklet published by the American Council on Education for the Council on Post-Secondary Accreditation, Washington D.C.. Authorised Dealers should ensure that the latest copy of the above Booklet remains available with them.

(d) Primary and Secondary Education.
No exchange facility should be allowed for primary or secondary education abroad.

(III) Rates of exchange quota for studies abroad.
If the scrutiny of the application by the Authorised Dealers reveals that the student is eligible for the grant of foreign exchange facility for studies abroad and that the student has the prescribed qualification, foreign exchange on account of the following may be released by the Authorised Dealers at actuals: -

(IV) Working of exchange entitlement.
Foreign exchange entitlement of the student for one year will be worked out by the Authorised Dealer on the basis of letter of the educational institution indicating break-up of expenses as indicated above. Amounts of tuition and other fees and living expenses so worked out will be entered in the space provided for the purpose in the Application Form (Appendix V-78).

(V) Calculation of exchange entitlement in the case of foreign scholarships/ stipends/grants.
In cases where a student is in receipt of a Scholarship/Grant from abroad his exchange entitlement may be worked out in the following manner:
(a) Where the amount or financial aid being provided by the foreign institution is equivalent to or exceeds the total of the living allowance, tuition fees and other admissible items of expenditure to which the student would have otherwise been entitled in the country of studies, no additional foreign exchange should be released except an amount not exceeding U.S.$50/-  (U. S. Dollar fifty) for enroute expenses.
(b) Where the amount of financial aid being provided by the foreign institution is less than the exchange entitlement as worked out at (a) above, difference between the aid received abroad and the exchange entitlement may be released.
(c) Where the Scholarship/Grant has been offered by a foreign Government or its agency directly, under a Technical Assistance Programme, the student should be asked to produce NOC from the Economic Affairs Division, Government of Pakistan. In other cases of scholarship/grants offered by a foreign government or its agency NOC from Ministry of Education, Government of Pakistan should be required to be produced by the student.

(VI) Remittance of Tuition and Other Fees.
Tuition fee and other dues (Health, Insurance, Union, sports fees etc.) which are payable to the educational institution, should be remitted direct to the institution and not released to the student himself.  Living expenses are to be   remitted on monthly basis for a period up to 4 months in advance, at the option of parents/financier, on submission of an undertaking that in case the studies are discontinued earlier, the excess remittance will be brought back to Pakistan by the remitter. Lapsed monthly quota for 3 consecutive months can also be remitted with the subsequent monthly remittance.

(VII) Method of Release of foreign exchange for living expenses etc./renewal of exchange permits.
Students should initially be released foreign exchange for 3 months either in monthly instalments or in lump sum and advised by the Authorised Dealers that on their arrival in the country of their studies they should request their institutions for sending their recommendations to the Authorised Dealers in Pakistan well in time for continuation/extension of exchange facility to the students in the prescribed format (App. V-79). On receipt of the recommendations, the Authorised Dealers may renew the facility for the balance period of the first academic year. The renewal of the facility covering the full duration of the course will also be allowed by the Authorised Dealers on yearly basis on receipt of recommendations from the educational institutions concerned. Renewal of the facility in case of change of subject or change of institution may also be allowed subject to the following documents/conditions:
(a) Conditions mentioned in paragraph 39 (II).
(b) Self-explanatory letter from the student giving full justification for change of course/institution.
(c) A letter from the new institution certifying that the previous credits will be accepted/amalgamated in the student's new course.
(d) A letter of admission or I-20 Form from the new institution in case of change of institution.
(e) Fresh break-up of expenses including tuition fees etc. in case of change of institution.

In cases where recommendations for renewal of the exchange facility from the concerned institution are not received in time, Authorised Dealers may release foreign exchange for further two months only on an adhoc basis on approach by the financier/guardian provided he confirms that the student is continuing his studies. No further renewal should be allowed unless recommendations of the institution are received by the Authorised Dealers.

(VIII)  Advance remittances for registration on a course or reservation of accommodation etc.
In cases where students are required to make advance remittance of tuition fees to the educational institutions in which they obtain admission for registration of a place on the course or make an advance deposit for reservation of accommodation in a dormitory or hostel, Authorised Dealers may approve remittance on production of documentary evidence in support of the requirement of advance remittance provided the financier/guardian of the student gives an undertaking to the effect that if the student does not proceed abroad for studies, the amount being remitted in advance will be repatriated to Pakistan. However, before approving remittances for the above purposes Authorised Dealers should ensure, through a scrutiny of the original documents, that the applicant is otherwise entitled to the exchange facility for studies abroad as admissible under the rules. Such remittances should be adjusted from the future entitlement of the student on account of "tuition and other fees" and living expenses, as the case may be.

(IX) Remittance of application money for admission.
In cases where students are required to remit certain amount alongwith their application for admission in the foreign institution, Authorised Dealers may approve such remittances on production of documentary evidence showing the amount of application/admission fee. There is no restriction on the number of institutions to which a student can apply for admission.

(X) Allotment of Registration Number of the Students.
Each student application which qualifies for exchange facility will be given a distinctive Registration Number in the space provided in the Student Application Form. The Registration Number will invariably be quoted by the Authorised Dealer in all its correspondence in respect of the student concerned. While reporting remittances for education in their monthly exchange returns, Authorised Dealers will give Registration Number of the Student on Form 'M'.

(XI) Functional utility of Student Application Forms.
A copy each of the Application Form (Appendix V-78) with one set of photo copies of the relative documents will be sent by the Authorised Dealers to the Incharge (F.S.II) Section, Ministry of Education, Secretariat Block 'D', Government of Pakistan, Islamabad and the Pakistan Embassy concerned. The original application alongwith photo copy of the documents will be retained by the Authorised Dealers for their own record. Original documents will be returned to the student.

(XII) Drawal of exchange quota during vacations.
Airlines, Travel Agents/Shipping Companies have been given general permission to book passage of students who wish to come to Pakistan on vacation or for any other reasons on production of a simple declaration by the parents/guardian countersigned by the Authorised Dealers through whom remittances are made for educational expenses abroad. During the period a student remains on vacation in Pakistan, he may be allowed to draw full monthly student quota upto two months only. No maintenance quota should be allowed during the student's stay in Pakistan beyond two months. For this purpose the Authorised Dealers should obtain from the parents/guardian the probable dates of arrival and departure of the student, when approached for counter-signing the aforesaid declaration.

(XIII) Release of Foreign Exchange for FRCS/MRCP/MPCOG   Examinations.
(a) Authorised Dealers may release foreign exchange to the medical graduates on account of examination / tuition fees at actuals for appearing in FRCS/MRCP/MRCOG Examinations conducted by the Royal College of Physicians and Surgeons and Royal College of Gynaecology, United Kingdom and Ireland and other examinations of similar nature conducted by Medical Councils of U.S.A. and Canada. They are further  authorised to release foreign exchange for living expenses at actuals as recommended by the Royal College of Physicians/Surgeons/Obstetricians & Gynaecologists etc. abroad to the medical graduates who intend to go abroad for attending postgraduate short preparatory courses of 6 to 14 weeks' duration in connection with the above examinations. The medical graduates proceeding abroad only for taking the above examinations will not be entitled to any foreign exchange and they can utilize their Private Travel Exchange Quota for the purpose where available. Authorised Dealers are also hereby authorised to release foreign exchange at the rates normally admissible for short preparatory courses mentioned above for studies abroad to the medical graduates for the period of the unpaid clinical attachment (not exceeding 8 months) in connection with the above examinations, remittances being made on monthly basis.

(b) The following documents will be required for the release of foreign exchange for the above purpose:
( i) Photocopy of the M.B.B.S. Degree.
( ii) Photocopy of Membership Certificate of Pakistan Medical Council.
(iii) Demand Note/Letter for Examination Fees, in original, from General Medical Council U.K./Ireland/U.S.A./Canada indicating the amount of examination fees and the schedule of examination dates.
(iv) An undertaking from those candidates who intend to proceed abroad for examination only that they will not claim any exchange facility from Pakistan except the PTEQ as admissible to them.
(v) Where applicable, Admission Letter/Letter from the Royal College of Physicians/Surgeons/Obstetricians and Gynaecologists detailing short preparatory post-graduate courses viz. duration of course, tuition fee, break up of living expenses for the duration of the course, etc.
(vi) Where applicable, an undertaking from the student that he will not claim any exchange facility from Pakistan in addition to one allowed to him for short preparatory courses before his departure from Pakistan.

40. Freight on Personal Baggage.
(i) Airlines and Shipping Companies are authorised to accept freight at actuals in rupees on personal baggage, whether accompanied or un-accompanied, both in respect of outward and inward journeys originating from Pakistan and terminating abroad, or originating from abroad and terminating in Pakistan, from travellers other than those who are covered by succeeding sub-paragraph (iii). Airlines/Shipping Companies can also accept outward excess baggage, whether accompanied or un-accompanied, on freight-to-pay basis without limit. However, it will be the responsibility of the Airlines to ensure that in respect of accompanied baggage, Excess Baggage Tickets are issued at actual weight basis and passengers are not provided with Miscellaneous Charges Orders for the purpose.

(ii) Shipping Companies/Airlines may accept payment of freight in rupees upto Rs 500 per packet in connection with the export of gift parcels and actual freight in connection with the export of bonafide free trade samples covered by paragraph 2 of Chapter XII. The Shipping Companies/Airlines while reporting such collections in their monthly returns of passage and freight collections should enclose a copy of the Airway Bill/Bill of Lading in support of the relative freight collections.

(iii) In respect of categories of travellers mentioned in sub-paragraphs (i), (ii)(a) and (iv)(a)  of paragraph 8 of this chapter, Airlines/ Shipping Companies can accept freight without limit for transportation of personal effects whether accompanied or un-accompanied on outward journey subject to the same conditions as laid down in the said sub-paragraphs for booking of passage.

41. Release of Foreign Exchange for travel, education, medical treatment etc.
Amounts of foreign exchange in excess of the limits on payments for invisibles specified in paragraph 17 to 40 shall be released by the Authorised 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.

42. Conversion of Unspent Balance of Rupees by Foreign Nationals.
Authorised Dealers may allow conversion into foreign exchange of the unspent amount, without any limit, left with the foreign tourists out of proceeds of foreign exchange encashed by them in Pakistan with an Authorised Dealer. Re-conversion facility will be provided on production of encashment certificate (App. V-10) by the foreign tourist or on the basis of endorsement recorded on his passport by  an Authorised Dealer at the time of purchase of foreign exchange. The relative encashment certificate or copy of the relevant pages of passport shall be submitted to the State Bank alongwith the monthly returns.

43. Endorsement on Passports and Tickets
The amount of exchange sold by the Authorised Dealers together with the date on which the sale is made must be recorded on the traveller’s passport under the stamp and signature of the Authorised Dealer at the time the sale is made. The endorsement should be made on the special pages provided for the purpose. The exchange issued should also be endorsed on the first page of ticket jacket as also back side of the passengers’ coupon and a  hole punched in the upper right hand corner of the passengers air/steamer ticket. Authorised Dealers should not sell any exchange unless a person holds a ticket for departure on a definite date and that such a date is not later than two weeks from the date on which the exchange is issued. No exchange should be sold against tickets which do not specify the date of departure provided that these instructions do not apply if a person is travelling by land route where only the passport will be endorsed.

44. Form in which Exchange may be issued.
(i) 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 drawee bank shall be made only on the personal application and identification of the traveller. When issuing travellers cheques or circular letters of credit, the Authorised Dealers should invariably mention therein, the place and date of issue. The travellers cheques or circular letters of credit must be signed personally by the applicant in the presence of the Authorised Dealer. The travellers cheques issued against the admissible Private Travel Exchange Quota will be branded by the Authorised Dealers with a rubber stamp containing the narration “Good for encashment outside Pakistan and in case of encashment in Pakistan, proceeds will be paid in Pakistan rupees only.” The Authorised Dealers will maintain record of travellers cheques sold by them in a register with the prescribed ruling (Appendix V-80).

(ii) The release of admissible Private Travel Exchange Quota to the travellers proceeding abroad in the shape of foreign currency notes will be restricted to US$100 only. 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.

45. Surrender by Travelers of Unspent Foreign Exchange.
Attention of the all persons  granted foreign exchange for travel abroad should be drawn by the Authorised Dealer to sub section (3) of Section 4 of the Act. No person who acquires foreign exchange for travel can use it for  a purpose other than for his living or travelling expenses in the country for which exchange is issued. In the case of special allotment made by the State Bank, the exchange can be  utilised only for the purpose for which it is sanctioned. All unspent amounts  of foreign exchange should be sold  to an Authorised Dealer by the traveller immediately on his return to Pakistan. If so desired by the person concerned, the amount of foreign exchange thus surrendered may be endorsed on his/her passport.

46. Exchange for Hajj.
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 Authorised 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.

47. Remittances for maintenance expenses of the families of Pakistanis living abroad temporarily.
State Bank considers requests for allowing remittances in foreign exchange on account of living expenses of families of Pakistani nationals living abroad temporarily for some genuine personal reasons and whose cases are not covered by para 24 and 39 of this chapter provided the following documents are submitted:-

(i) 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.

(ii) 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.

48. ‘Authorized Dealers may issue foreign currency travellers’ cheques to foreign nationals and Pakistani nationals (residents and non-residents) for travel purpose only upto the limit prescribed under para 10(f) Chapter XVIII of the Foreign Exchange Manual (Eighth Edition) against surrendering of an equivalent amount of foreign exchange in cash’.

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