Document background
The Advised Letter of Credit is a crucial document in international trade finance under Pakistani jurisdiction, utilized when a bank in Pakistan acts as an advising bank to authenticate and forward a letter of credit issued by a foreign bank to a Pakistani beneficiary (or vice versa). This document type is essential for businesses engaged in cross-border trade, providing security and payment assurance to both importers and exporters. The document must comply with Pakistani banking regulations, particularly the Banking Companies Ordinance 1962 and State Bank of Pakistan directives, while also adhering to international banking practices and UCP 600 guidelines. It includes detailed specifications about the transaction, payment terms, required documentation, and obligations of all parties involved.
