Government of Pakistan

State of Bank Pakistan

July 07, 2004

F.E. Circular No. 12 of 2004

Head/Principal Offices of

Authorized Dealers in Foreign Exchange.

Dear Sirs,

Liberalization of Foreign Exchange – Information Technology Services

In accordance with State Bank’s policy towards liberalization of the Foreign Exchange regime, Authorized Dealers are hereby granted general permission to release foreign exchange upto a maximum of US$ 100,000/- or equivalent in other currencies per invoice for private sector companies incorporated in Pakistan, for payments on account of utilization of Information Technology services, after satisfying themselves with the genuineness and bonafides of the requests through invoices, Government approvals/NOCs/licensing or certifications wherever so required as per the instructions in Foreign Exchange Manual, and after deducting all applicable taxes. A list of eligible items under this circular is as follows:

i) Satellite Transponder charges.

ii) International Bandwidth charges.

iii) International Internet service charges.

iv) International Private Line charges.

v) Software licence/maintenance & support fees for proprietary/ specialized software.

vi) Subscriptions/payments for access to foreign electronic media & databases.

The following categories shall, however, continue to be governed under the existing instructions:

a. Remittances by Branches/Liaison/Project Offices of foreign companies (other than branches of foreign banks).

b. Remittances by State Bodies & Enterprises.

Remittances under authority of this circular may only be made through a bank designated by the remitters for the purpose under intimation to Exchange Policy Department, State Bank of Pakistan

The above changes shall take effect immediately.

Yours faithfully,

(Zahid Rafique)

Joint Director