Wednesday, February 8, 2023

Govt imposes restrictions on foreign currency account holders

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KARACHI: The government has banned individuals from depositing foreign exchange into bank accounts if the forex has been purchased from the open market.

Ministry of Finance has tightened regulations for the Pakistanis having foreign currency accounts in the country. The finance ministry on Friday issued foreign currency account rules 2020 which have been enforced from October 9, 2020.

According to the notification, a foreign currency account may be credited from remittances received from abroad through banking channels except for:

  • Payment of goods exported from Pakistan
  • Payment of services rendered in or from Pakistan
  • Proceeds of securities issued or sold to non-residents
  • Any foreign exchange borrowed from abroad under any general or special permission of SBP

“A foreign currency account shall not be credited with any foreign exchange purchased from an authorized dealer, exchange company or money changer, expected allowed by the State Bank through general or special permission under any law,” the notification stated.

However, foreign currency brought from abroad and duly declared at the point of entry into Pakistan may be credited into these accounts.

The notification clarified in the end that there shall be no restriction on cash withdrawals or transfer from the Foreign Currency Accounts.

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