VZCZCXYZ0000
RR RUEHWEB

DE RUEHIL #0388 0251332
ZNR UUUUU ZZH
R 251332Z JAN 08
FM AMEMBASSY ISLAMABAD
TO RUEHC/SECSTATE WASHDC 4662
INFO RUCNDT/USMISSION USUN NEW YORK 7672
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHKP/AMCONSUL KARACHI 8747

UNCLAS ISLAMABAD 000388 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: KNNP IR PREL PK
SUBJECT: PAKISTAN RESPONSE TO USG QUESTIONS REGARDING DECEMBER 18 
NOTICE ON BANK SEPAH 
 
REF: STATE 4206 
 
¶1. (SBU) Econ Counselor met with Jameel Ahmad, Executive Director, 
State Bank of Pakistan (SBP) in Karachi on January 24 to discuss the 
Bank Sepah transaction (reftel).  Ahmad explained that Bank Sepah 
had opened two letters of credit (the first for USD 626,091.42; the 
second for USD 677,640.89) on January 15, 2007 with United Bank to 
finance exports of acrylic staple fiber from Divan Salman Fibers 
Ltd, one of Pakistan's largest manufacturers and exporters of 
textile fibers. 
 
¶2. (SBU) The SBP investigated this transaction to ensure that banned 
items were not being shipped.  It verified the shipment with the 
exporter and examined the customs documentation for these shipments. 
No irregularities were found. Ahmad highlighted that the opening of 
these letters of credit occurred prior to the passage of UN 
Resolution 1747 which went into effect March 24, 2007.  Bank Sepah 
has no branches in Pakistan, and the funds in the two letters of 
 
credit have now been exhausted. 
 
PATTERSON