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