KARACHI: The State Bank has decided to allow 30 per cent advance remittances on behalf of Haj Group Organisers (HGOs) to facilitate the pilgrimage process in Saudi Arabia.

The State Bank issued a circular on Friday with details and conditions for advance remittances and asked the banks to keep the process clean and transparent while assuring genuineness of the clients.

“In order to facilitate HGOs to make arrangements of Maktab, housing, catering, transportation, guides, etc, in Saudi Arabia, it has been decided to allow authorised dealers to make advance remittances on behalf of HGOs up to 30pc of the Haj Package being offered by them to individual pilgrims,” said the circular.

The remittances will be made on submission of information about the authenticated underlying contract with the Saudi vendor and service provider.

It further advised banks to get details of Haj Package bifurcating projected local and foreign expenses per pilgrim. It also advised to receive information about the quota allocation letter by Ministry of Religious Affairs and Interfaith Harmony for previous Haj season. It included an undertaking from concerned HGO for repatriation of funds in case of nonperformance.

Information also needed about the invoices issued by Saudi vendors/service providers in favour of which advance remittance is being made.

However, in case final invoices are not available with HGOs at the time of remittance, the authorised dealers will ensure receipt of related invoices subsequently, said the SBP circular.

While processing advance remittance request, the authorised dealer will take all possible measures to verify the genuineness of the transaction.

In case of nonperformance of contract for any reason, the authorised dealers and HGOs will ensure repatriation of advance payment before completion of respective Haj 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 favor of State Bank of Pakistan, said the circular.

Published in Dawn, February 25th, 2017