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SBP orders banks to make POL-related foreign exchange purchases from interbank

KARACHI (January 16 2009): The State Bank of Pakistan on Thursday announced that all purchases of foreign exchange relating to the import of POL products will be made by banks from the interbank market.

The SBP has withdrawn its previous order under Para-3 of FE Circular No 8 of July 8, 2008 through which the SBP had decided to provide foreign exchange to the authorised dealers for payment against import of POL products.

This has now been decided that banks will make all purchases of foreign exchange, relating to the import of furnace oil from the interbank market with effect from February 2, 2009, the SBP said. All POL-related foreign exchange purchases, which are made on specific Form 'M' against approvals issued by the Exchange Policy Department will be made by banks from the interbank market, the SBP added.

However, the State Bank will continue to provide foreign exchange to banks for import of all POL products other than those specified under point (1) & (2). The SBP has advised all authorised dealers to bring the above to the notice of their constituents.

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