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For business information, annual reports, laws, ordinances, regulations and articles. |
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PREFACE
This is an updated and revised
edition of Foreign Exchange Manual. Since the publication of seventh edition of the Manual
in 1992, innumerable developments have taken place in the regime of Foreign Exchange. All
the efforts of de-regulation of the economy and creation of a liberal Foreign Exchange
regime received great setback after nuclear detonation in 1998 resulting in imposition of
sanctions etc. As the economic reform process has once again been put back on track it was
deemed necessary to resume the path of liberalizing foreign exchange regime. The State
Bank has made a paradigm shift in its own role i.e. from implementing direct controls to
providing guidance and ex-post monitoring. Accordingly, various controls specified under
the Manual have been eliminated and powers of decision making have been delegated to the
Authorised Dealers. This shift has therefore necessitated a complete rewriting and
revision of the Foreign Exchange Manual.
The current (eighth) edition has been published in two volumes for the convenience of the
users. Volume–I consists of summary of instructions issued to Authorised
Dealers, the Foreign Exchange Regulation Act, 1947, the Notifications issued thereunder by
the Federal Government and State Bank of Pakistan and the list of Authorised Dealers.
Volume – II consists of specimen of the prescribed forms, list of Chambers of
Commerce and Industry and Trade Associations authorised to recommend business travel cases
and scales of daily allowances.
As a change in State Bank’s policy, the amendments in the Manual have been made in
consultation with the persons related to Foreign Exchange field i.e. traders, importers
and exporters etc. and the views of Authorised Dealers have also been incorporated. The
draft proposals including Circulars are now vetted as a matter of routine by the
representatives of the Authorised Dealers. Changes in the Manual, made from time to time,
are conveyed to the Authorised Dealers through F.E. Circulars/Circular Letters. Although
these Circulars are posted regularly on SBP Web page it is advisable, as a matter of
abundant caution, that those using the Manual should consult their bankers before entering
into transactions covered by the instructions laid down in the Manual. It is obvious that
up-dating of the Manual will be an ongoing process and future changes will continue to be
made whenever necessary keeping in view the changing demand of the users and suppliers of
foreign exchange.
(ISHRAT HUSAIN)
GOVERNOR
