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CHAPTER
XXI
REPATRIATION OF INVISIBLE EARNINGS OF FOREIGN EXCHANGE
1. Obligation to
Repatriate Foreign Exchange.
Notification No.S.R.0.1016(I)/79 dated the 17th October, 1979 (Appendix II-8)
issued by the Federal Government pursuant to Section 9 of the Act requires all citizens of
Pakistan and other persons residing in Pakistan continuously for 6 months or more, who
become the owner of any foreign exchange, whether held in Pakistan or abroad, to sell such
foreign exchange to an Authorised Dealer within three months of the date of acquisition by
them of such foreign exchange. In the case of foreign nationals or foreign business
houses, however, the above provision is applicable only to the extent of their earnings
abroad in respect of business conducted in Pakistan or services rendered while in
Pakistan.
2. Information on Foreign Exchange Receipts.
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:
(i) 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.
(ii) Tour Operators.
(a) Half yearly statement in the prescribed form (Appendix V-98) showing the amount of
foreign exchange received by them on account of services rendered to foreign tourists. The
aforesaid 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 each agency agreement entered into with foreign tour operators and
airlines etc. In cases where the business is undertaken on the basis of special terms and
conditions not covered by any agency agreement, authenticated copies of the relative
correspondence on the basis of which the rates have been finalized, should accompany the
above half yearly statement.
(c) Tour Operators who are earning foreign exchange on account of services rendered to
foreign tourists and are reporting such invisible earnings to the State Bank in the manner
prescribed in sub-para (a) above are allowed to retain upto 35% of their net foreign
exchange earnings in foreign currency accounts, vide paragraph 33 Chapter XII of the
Manual. Those Tour Operators who intend to use these funds for opening of offices abroad
may approach the Joint Director, Investment Division, Exchange Policy Department, State
Bank of Pakistan, Central Directorate, Karachi in the matter.
(iii) 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. In case
business is undertaken on the basis of special terms and conditions not covered by any
standing agreement, authenticated copies of the relative correspondence exchanged between
the foreign client and the Pakistani Patent Agent/Attorney should accompany the statement.
3. Submission of Encashment Certificates.
Encashment certificates from Authorised 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.
