KARACHI (June 10 2005): The State Bank of Pakistan in a circular on Thursday clarified that all franchisees, who have been allowed by their respective franchisers to deal in foreign currency accounts outward/inward remittances, must route their remittance transactions only through their respective franchisers and not directly from their foreign currency accounts.
The circular said that the franchisees are not allowed to deposit/ withdraw cash from their respective foreign currency accounts.
In terms of EPD Circular letter No 1/EPP.1 ((95) FC-Policy-2004, February 12, 2004 exchange companies were allowed to enter into franchise arrangements with suitable counterparts.
It has been observed that certain franchisees are allowed by the exchange companies to deal in the business of remittance besides undertaking the sale/purchase of foreign currencies.
Such franchisees are also requesting banks to open their foreign currency and Pak rupee accounts with the intention to operate the same for cash remittance transactions. All the heads/chief executives of the exchange companies are advised to take requisite measures to ensure compliance of these instructions by their respective franchisees.