SBP announces strict measures for foreign currency outflow

KARACHI: In order to enhance transparency in the foreign currency transactions by exchange companies and to curb undesirable outflow of cash foreign currency, the State Bank of Pakistan (SBP) has introduced regulatory measures.

According to guidelines shared by the SBP, persons travelling to Afghanistan will be allowed to carry only US$1,000 per person per visit with a maximum annual limit of US$6,000.

Exchange companies will be required to conduct biometric verification for all foreign currency sale transactions equivalent to US$500 and above and outward remittances and it would be applicable with effect from October 22.

The SBP further directed that exchange companies will sell the cash foreign currency and make outward remittances, equivalent to US$10,000 and above, against receipt of funds through cheque or banking channels only.

The central bank said that the regulatory measures would help to improve documentation of the sale of foreign currency by exchange companies and place a check on undesirable outflow of foreign currency.