No restriction on withdrawal, transfers from foreign currency accounts: ministry

No restriction on withdrawal, transfers from foreign currency accounts: ministry

ISLAMABAD: The ministry of finance on Friday issued rules governing foreign currency accounts of individuals under which there shall be no restriction on cash withdrawal or transfers from the foreign currency account.

The ministry issues rules governing foreign currency accounts of individuals, under which a foreign currency account of an individual may be credited with the remittances received from abroad through banking channel except:

— payment for goods exported from Pakistan;

— payment for services rendered in or from Pakistan;

— proceeds of securities issued or sold to non-residents; and

— any foreign exchange borrowed from abroad under any general or special permission of the State Bank of Pakistan (SBP).

It said that the SBP may issue any general or special permission for credit to the account.

The rules however, stated that a foreign currency account may be credited through transfer from other individual foreign currency account.

“Proceeds realized on account of profit, return and principal amount of investment made in any foreign currency dominated or foreign currency linked scheme of Government of Pakistan may be credited into the account,” it said.

A foreign currency account shall not be credited with any foreign exchange 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, foreign currency brought in from abroad and duly declared at the point of entry into Pakistan with Pakistan Customs may be credited in the account.

The rules explained that there shall be no restriction on cash withdrawal or transfers from the foreign currency account.

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