Key Updates to Pakistan's Forex Regulations: 2020 and 2023
"Pakistan mein paisay bhejne hain? 2020 aur 2023 ke forex qawaaneen ke baray mein jaan lein. Aapki raqam ki safe transfer ke liye zaroori maloomat." Sending money to Pakistan? It's important to know about the forex regulation changes in 2020 and the latest updates in 2023 to avoid surprises.
The 2020 Forex Regulation Changes:
- Deposit Restrictions: The government limited deposits in foreign currency accounts to combat illegal activities like money laundering. Only specially permitted or custom-declared currencies could be credited.
- Permission for Deposits: Depositing foreign currencies required permission from the State Bank, along with a declared purpose.
- Investment Encouragement: Investments in saving certificates via foreign currency accounts were promoted to strengthen foreign exchange reserves.
- Transaction Monitoring: Enhanced scrutiny was introduced for financial transactions to meet FATF guidelines against money laundering and terror financing.
2023 Updates:
- Travel Currency Limits: The SBP reduced currency limits for travelers to $5,000 for adults and $2,500 for minors per trip, with annual ceilings of $30,000 and $15,000, respectively.
- Purchase Limits for Foreign Currency: Individuals are now limited to buying $10,000 daily and $100,000 annually in foreign currency.
- Remittance Limits for Education and Medical Expenses: Limits set for remitting educational expenses ($70,000/year) and medical expenses ($50,000/invoice) abroad, with documentation required for transactions over $1,000.
Practical Implications: For those sending money to Pakistan, these regulations mean more documentation, awareness of limits for currency carrying and purchasing, and understanding permissible reasons for foreign currency transactions.
Action Plan:
- Understand Limits: Familiarize yourself with the new currency carrying and purchasing limits for travel and remittances.
- Prepare Documentation: Ensure you have all necessary documents, especially for transactions over $1,000.
- Use Sendrater: Check Sendrater for real-time comparisons and the best rates for transferring money to Pakistan.
Stay informed and compliant with the latest forex regulations for hassle-free money transfers to Pakistan. For more detailed information, review our comprehensive guide on sending money to Pakistan. You can also see the most competitive money transfer providers sending money to Pakistan here.