Government introduces new rules for Pakistanis with foreign currency in their bank accounts

A foreign currency account may be credited through transfer from another individual foreign currency account.

In an interesting new development, the Ministry of Finance has imposed major restrictions on Pakistanis having foreign currency in their accounts. The ministry issued ‘foreign currency account rules 2020’, which have been put into practice from the 9th of October, 2020.

The rules stated that the foreign currency of an individual may be credited with the remittance received from abroad through banking channel except:

  • payment for 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 the SBP; given that the SBP may issue any general or special permission to credit the account
  • payment of goods exported from Pakistan

The new regulations

Under these new rules, a foreign currency account will not be credited with any foreign exchange that will be purchased from an authorized dealer, exchange company, or money changer except as allowed by the SBP through general or special permission under any law. However, the currency that is brought from abroad and declared at the point of entry into the country with the Pakistan Customs may be credited in the account.

On the other hand, there are no restrictions on cash withdrawal or transfer from the foreign currency account. The regulations state that the federal government was making those rules due to powers given by Section 11, and the second proviso to sub-section (4) of Section 5 of the Protection of Economic Reforms Act, 1992.

A foreign currency account may be credited through transfer from another individual foreign currency account. Proceeds made on account of profit, return and the principal amount of investment made in any foreign currency-denominated or foreign currency linked scheme of the Pakistani government may also be credited in the account.

What are your views on this? Share in the comments bar below.

    • Look at the 1st and 4th(last) clause. Are these people Lunatic? If someone exports something from Pakistan , he cannot receive money to his Foreign Bank account???????

      Also, the first one, Payment of services rendered in or from Pakistan. Well if I am providing services to foreign clients while living in Pakistan then if I am unable to tell my clients to send money to my Pakistan Foreign account. What should I do? Should I open a Bank account abroad and use money abroad only….Are these people lunatic?

      • Are you ok? Which country allow anyone to keep other currency?
        Secondly facility is only to support oversees Pakistanis earning outside Pakistan. Exports are not eligible……….

        • Are u retarded? All the countries in the world welcome Foreign currency accounts. It is bcoz of Foreign currency and low tax for foreigners(also for locals) that investment comes. 3rd world and corrupt countries put restrictions on movement of money. In the coming years software and out sourcing will be big business in pakistan. The world is opening up to A.I , sending mission to Mars(private company=SpaceX) making Electric vehicles, while we are putting restrictions on Foreign accounts.

      • All that foreign currency must be surrender to state bank and change to pak rupees and then credit to your rupee account as it is already a practice. Nothing new. All above rules for “foreign currency account”. So no panic!

        • Oh hello… “Foreign currency surender to State Bank”,,,,Abdullah9 beta aap Somalia chalay jaoo… Any Pakistani can have a Foreign currency account. Its been for years. To lure Foreign investment you have to make an atmosphere in which the Foreigner INvestors feel safe and can freely move money while adhering to AML,KYC laws.

          • فارن انویسٹیرز لا سکتے ہیں لیکن مقامی لوگ روپیہ بیچ کر ڈالر خرید نہیں کھلوا سکتے۔۔۔۔

      • بھائی جان آپ الٹا پڑھ اور سمجھ رہے ہیں۔ ان طریقوں سے آپ وصول کر سکتے ہیں

      • Only deposit in fc account is not allowed now
        Foreigner send remittance in ur account is still allowed

  • No one is depositing money in banks. The tax rate is high. FBR is doing blackmailing , so is FIA. Now these morons are making it 100x more hard to do any business even outside Pakistan. People will use black market get their money trnsferred abroad by paying premium. Use of Crypto currency for illegal purposes and legal purposes will sky rocket. Thanks #PagalKayBachy

  • We shall give comments on policy not on each other and leg pulling, typical Pakistani mentality. Any hidden drawback shall be explained by financial expert, for overseas Pakistani sending money to their accounts.

  • Featured Content⭐