KARACHI: The State Bank of Pakistan (SBP) has amended its rules on the purchase of foreign currency, binding all exchange companies to ensure that no individual can buy foreign exchange of more than $10,000 per day and $100,000 per calendar year.
The new rules have been announced as the greenback continues to climb against the rupee and the central bank struggles to stop the flow of foreign currency out of Pakistan and enhance transparency in transactions by exchange companies.
On Friday the rupee crossed the psychological barrier of Rs178 in the interbank market, losing its value by 0.03 percent to close at Rs178.04 against the greenback.
“In order to enhance documentation and transparency and to further strengthen the foreign exchange regulatory regime, the State Bank of Pakistan has amended the regulations governing sale of foreign exchange to individuals by exchange companies,” the central bank said on Sunday.
“This step, which is in continuation of other measures being taken by SBP, is primarily to discourage speculative buying and selling of foreign exchange from the exchange companies without affecting the ability of the market to serve the genuine needs of the public.”
Listing the new rules, the bank said exchange companies were now bound to ” ensure that any individual shall not purchase foreign exchange from all exchange companies in excess of USD 10,000 per day and USD 100,000 (or equivalent in other currencies) per calendar year, in the form of cash or outward remittances.”
Additionally, the statement said, individuals could remit educational and medical expenses abroad up to $70,000 per calendar year and $50,000 per invoice respectively, from banks as per existing regulations.
“For remittance of any amount in excess of these limits, or for any other purposes, individuals can approach Foreign Exchange Operations Department of SBP-BSC, through their bank. Further, there is no change in regulations with respect to foreign currency accounts of the individuals,” the statement said.
Under new rules for exchange companies announced in October, people traveling to Afghanistan were allowed to carry only $1,000 per person per visit, with a maximum annual limit of $6,000. Exchange companies were required to conduct biometric verification for all foreign currency sale transactions equivalent to $500 and above and outward remittances, effective from October 22, 2021.
Exchange companies were also asked to sell foreign currency in cash and make outward remittances equivalent to $10,000 and above against receipt of funds through cheque or banking channels only.
