KARACHI: The State Bank of Pakistan has introduced a new regulatory requirement making it mandatory to submit a declaration for foreign inflows exceeding $25,000, aiming to enhance transparency and strengthen monitoring of cross-border financial transactions.
According to the central bank’s latest directive, the declaration will apply to inward remittances received for purposes other than export of goods and family maintenance. Beneficiaries receiving such funds must now provide detailed information, including their name, CNIC or National Tax Number, the remitter’s details, the amount received, and the purpose of the transaction.
The new requirement also includes additional disclosures in cases involving foreign investment or inter-company loans. These include details about the status of the remitter, the ultimate controlling parent (UCP), and the country of residence. Beneficiaries must formally declare that the information provided is accurate and complies with the Foreign Exchange Regulation Act, 1947.
Authorized dealers, including commercial banks, will also play a key role in verifying and reporting these transactions. They are required to complete additional documentation, including country codes, purpose codes, and transaction dates, while ensuring that all information is backed by proper evidence.
In a related move, the SBP has revised key reporting forms, including Form “R”, Form “M”, and the Inward Remittance Voucher (IRV), to align with modern regulatory and reporting requirements. The threshold for mandatory reporting through these forms has also been standardized at $25,000.
The central bank has instructed banks to adopt the revised formats immediately and transition towards digital submission systems by June 30, 2026. This step is expected to streamline reporting processes and improve data accuracy through automation.
Analysts say the move will help curb illicit financial flows, improve documentation of foreign exchange transactions, and strengthen Pakistan’s compliance with international financial standards. It also reflects the SBP’s broader efforts to modernize the country’s financial system and ensure greater oversight of foreign inflows.
Banks and authorized dealers have been directed to ensure strict compliance and inform customers about the updated requirements to avoid any disruptions in remittance processing.