KARACHI, Sept 17: The State Bank has allowed banks to release foreign exchange to Haj group organizations (HGOs) enlisted with the ministry of religious affairs under the private Haj scheme for 2005.
The SBP issued a circular on Friday informing the banks of the procedure to be adopted for this purpose. The circular says that banks can remit outward Hajj-related foreign exchange on behalf of the HGOs in the following manner:
* HGOs must present the original letter issued by the ministry of religious affairs to the banks, showing their enlistment with the ministry and allocation of the seats. Banks affecting foreign exchange remittances must invariably endorse short details and full amounts of the remittances.
* HGOs must also present to the banks the letter issued by the ministry, describing the detailed instructions to be followed by the HGOs and the amount of foreign exchange to be remitted to Saudi Arabia.
* Banks must also get the list of intending Hajis along with copies of relevant pages of Haj passports. They must get the copy of the air ticket also.
Copies of the related documents shall be retained by the banks and the same must be made available to the inspection teams of the State Bank as and when called for. The banks shall also report these transactions in their foreign exchange returns.
The circular makes it clear that the permission is only applicable for Haj 2005, adding that the banks must ensure that no remittances are allowed under this circular after the last day of the Islamic month of Ziqa'ad 1425 A.H.
Meanwhile, in a separate circular issued to all foreign exchange companies, the State Bank has said that these companies can also remit foreign exchange to Saudi Arabia on behalf of HGOs under the Haj policy of 2005 on account of accommodation charges and compulsory Haj dues.
The procedure laid down for the banks will also be applicable on exchange companies. But the circular makes it clear that exchange companies have been allowed to make remittances on behalf of HGOs "as a one-time exception and in order to facilitate pilgrims for Haj 2005." There are more than a dozen exchange companies in the country.