KARACHI: The State Bank of Pakistan (SBP) on Tuesday revised Foreign Exchange Manual related to remittances for petroleum sector operating under petroleum concession agreements.
The central bank invited attention of Authorized Dealers is drawn towards Para 27 of Chapter 14 of Foreign Exchange Manual in terms of which SBP notified the process of remittance for Petroleum Sector.
Based on representations received from various stakeholders, it has been decided to amend Para 27 of Chapter 14, as under:
27. Remittance for Petroleum Sector Operating under Petroleum Concession Agreement(s):
Authorized Dealers are allowed to effect remittances, on account of purchase of Oil and Gas from Oil & Gas Exploration and Production (E&P) Companies operating in Pakistan under Petroleum Concession Agreements. All such remittances may be effected by the Authorized Dealer after satisfying itself about the genuineness of the transaction by reviewing the following documents:
Request letter from the applicant (Remitter).
Copy of duly executed valid Concession Agreement (to be submitted once during the validity period).
Details of Seller’s Working Interest.
Copy of valid underlying agreement/contract etc. between Applicant (purchaser) and seller (to be submitted once during validity period) – wherever applicable.
Form “M” duly filled signed and stamped by the applicant
Invoices complying the above mentioned underlying agreements, with complete details including quantity, description of goods, price, and conversion rate duly signed and stamped by the seller.
Verification of each invoice by a designated senior officer of the buying company along with stamp and signature.
Foreign Exchange allocation /No objection/approval of Ministry of Finance, where applicable.
Undertaking from the applicant to the effect that no payment has been made against the invoice(s) in question. The undertaking can also be made part of the request letter.”
In case of any exemption from documentary requirements stipulated above, the authorized dealer shall approach Foreign Exchange Operations Department, SBP-Banking Services Corporation Karachi with proper rationale and recommendations.