The State Bank on Monday advised authorised dealers that they may credit PKR denominated R&D support payments from the SBP in the relevant non-resident PKR accounts of EPZs units maintained with them and, thereafter, allow withdrawals/debits in PKR for equivalent utilisation.
In EPD circular letter No/10/EPP.1 (51) R&D/2006, the SBP stated: "Authorised dealers must ensure at all times that total PKR withdrawals/debits to these accounts do not exceed the total amount of R&D support received from SBP and credited to non-resident PKR accounts.
Referring to FE circular No 06 dated June 18, 2005, the SBP stated 6 percent R&D support was allowed to the garment industry. Subsequently, in accordance with MoC's decision in terms of FE circular No 04 dated April 14, 2006, R&D support was also allowed on export of readymade textile garments from EPZ units on the production of bank certificate certifying that export proceeds of R&D support claims have been received in foreign currency.
The SBP also explained reporting of above transactions will be made on Form A-7 (Appendix V-7) under existing procedures. The SBP also directed authorised dealers to bring this change in the notice of all their constituents.