Hajj arrangements: SBP allows 30 percent advance remittances

The State Bank of Pakistan (SBP) has allowed Authorised Dealers (ADs) to make advance remittances on behalf of Hajj Group Organisers (HGOs) up to 30 percent of the Hajj package for Hajj arrangements in Saudi Arabia. "In order to facilitate the HGOs to make arrangements of Maktab, housing, catering, transportation, guides, etc, in Saudi Arabia, it has been decided to allow the ADs to make advance remittances on behalf of HGOs up to 30 percent of the Hajj Package being offered by them to the individual pilgrims," said EPD Circular Letter No 07 of 2017 issued on Friday.
According to SBP, the remittances will be made on submission required information/documents by the respective HGOs. Authenticated underlying contract with Saudi vendor/service provider, details of Hajj package per pilgrim, quota allocation letter by Ministry of Religious Affairs & Interfaith Harmony for previous Hajj season, undertaking from concerned HGO for repatriation of funds in case of non-performance and invoice(s) issued by Saudi vendors/service providers in favour of which advance remittance is being made will be required to remit the 30 percent amount.
However, in case final invoices are not available with the HGOs at the time of remittance, the ADs will ensure receipt of related invoices subsequently. As per procedure, while processing advance remittance request, the AD will take all possible measures to verify the bona fides and genuineness of the transaction. In case of non-performance of contract for any reason, the AD and HGO will ensure repatriation of advance payment before completion of respective Hajj season.
In the case of repatriation of advance payment, exchange gain, if any, will not be passed on to the HGO, rather the same will be deposited in favour of State Bank of Pakistan through Demand Draft/Payment Order with the Director, Foreign Exchange Operations Department, SBP-Banking Services Corporation, Head Office, Karachi along with calculation/working sheet. To this effect, the AD should get consent/agreement signed by the concerned HGO at the time of effecting remittance. According to SBP, all other terms and conditions in this regard will remain unchanged. ADs have been advised to bring the above to the notice of all their constituents and ensure meticulous compliance.