Tag: remittances

Import of used vehicles: changes to payment of duty, taxes approved

ISLAMABAD: The government has approved changes to payment of duty and taxes system for clearance of used vehicles, which are allowed to import under three different schemes.

The Economic Coordination Committee (ECC) of the Cabinet on Wednesday on a proposal by the Commerce Division, took up the import of used vehicles under personal baggage, transfer of residence and gift schemes which require the payment of duties and taxes to be paid out of foreign exchange arranged by Pakistani nationals themselves or local recipients producing proof of conversion of foreign remittance to local currency, and allowed the importers to meet any shortfall in arrangement of required foreign remittance for payment of duties and taxes through local sources in case of a scenario where the Pak rupee depreciates or government increases the import duties and/or taxes after the receipt of remittance and before the filing of the good declaration, which results in shortfall of remitted amount vis-a-vis payable duties and taxes.

The ECC decision would help clear up a total of 1017 vehicles currently stuck at Karachi port because either no foreign remittance had been received or the remitted amount had been rendered insufficient due to depreciation of PKR before the filing or goods declaration or increase in the rate of duty in the Finance Act 2019.

On another proposal by the Commerce Division, the ECC accorded ex-post approval to an SRO issued by Commerce Division on August 21, 2019 for extending till August 31, 2019 the implementation of quality standards on the import of solar PV equipment into Pakistan under an SRO issued by the Commerce Division on May 28, 2019.

The Commerce Division had issued the SRO in late August following instructions from the Prime Minister to resolve the issue of several containers stuck up at ports due to lack of clarity amongst stakeholders, pre-shipment companies and border agencies regarding documents required for observance and implementation of the quality standards introduced on May 28, 2019 as per a decision of the federal cabinet.

November 7, 2019
SBP prohibits outward remittance transfers through on-board merchant accounts

KARACHI: State Bank of Pakistan (SBP) has prohibited transfer of outward remittances through newly introduced on-boarding merchant accounts.

The central bank in its rules issued for ‘Digital On-boarding of Merchants’ directed the acquiring institutions – Electronic Money Institution (EMI), and any non-banking entity duly authorized by SBP to on-board merchants under these Rules –not to permit cross border outward remittance transactions from these accounts.

The SBP said that acquiring institutions shall devise continuous monitoring mechanisms to ensure that merchants on-boarded not perform functions of Banking, Electronic Money Institutions (EMIs), Branchless Banking Agents, or any other activity for which specific and separate permission is required from SBP under the relevant laws and regulations.

The central bank further directed under these rules, included:

a) Acquiring institutions shall ensure that one CNIC holder can open only one Merchant Account in their Acquiring institution.

b) Acquiring institutions shall ensure that Merchant Accounts are only used for digital collection of payments against the provision of legitimate goods and services.

c) Acquiring institutions may provide electronic payment instruments like Debit Cards, Credit Cards, Direct Credit Transfers, Direct Debit etc. as per their own policies and procedures.

d) Acquiring institutions shall provide digital payment acceptance channels to these merchants that may include but are not limited to POS machines, m-POS, QR code, mobile payment applications, direct credit transfers, e-commerce gateways, etc. depending on their needs and requirements.

The SBP defined the digital merchants as: the digital merchant shall include small businesses or individuals providing legitimate goods and services like transport, home deliveries, small grocery and kiryana stores etc.

Acquiring institutions are especially encouraged to facilitate the digital on-boarding of women providing services from their home like cooked food, drapery services, handicrafts, tuition services etc., the SBP added.

Acquiring institution shall activate Merchant Accounts after fulfilling following KYC/CDD requirement of merchants:

a) Biometric Verification or Verisys from NADRA. In case of NADRA Verisys, Biometric Verification shall be mandatory at the time of first cash out or within three months of opening of these accounts, whichever is earlier. These accounts shall be deactivated if Biometric Verification is not carried out within three months of opening of accounts.

b) Pre-screening of merchants’ particulars against lists of entities and individuals designated by the United Nations Security Council (UNSC), lists of entities and individuals proscribed under the Schedule-I and Schedule IV of the Anti-Terrorism Act, 1997, respectively, and any other applicable sanctions lists.

c) Call Back Confirmation or generation of One-Time Password (OTP) for verification from merchants.

d) Carry out full or enhanced due diligence of merchant as per Acquiring institution own risk assessment, in light of applicable laws and regulations (if applicable).

e) Acceptance of terms and conditions provided in English and/or Urdu language of Merchant Account by the merchant.

Acquiring institutions shall place following maximum transaction limits on merchant accounts;

i. Rs. 50,000 per month for accounts opened remotely through NADRA Verisys

ii. Rs. 500,000 per month after Biometric Verification

b) The above transaction limits will be separately applied on Debit and Credit transactions

c) Acquiring institution may place lower transaction limits keeping in view of their institutional risk assessment and high-risk geographical locations of merchants.

The SBP also imposed Maximum Account Balance limited, included:

a) Acquiring institution shall ensure that merchants’ account balance shall not exceed the following limits at any point of time:

b) Rs. 50,000 till Biometric Verification

c) Rs. 500,000 after Biometric Verification

November 5, 2019
Overseas Pakistanis send $2.04 billion in July

KARACHI: Overseas Pakistani workers have remitted $2.04 billion in the first month of fiscal year 2019/2020 as compared with $1.98 billion in the same month of the last fiscal year, State Bank of Pakistan (SBP) said on Friday.

During July 2019, the inflow of worker’s remittances amounted to $2.04 billion, which is 23.91 percent more than June 2019 and 2.9 percent more than July 2018.

The country wise details for the month of July 2019 show that inflows from Saudi Arabia, UAE, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman) and EU countries amounted to $470.95 million, $427.33 million, $332.37 million, $299.27 million, $198.06 million and $58.30 million respectively compared with the inflow of $437.48 million, $446.25 million, $291.87 million, $298.51 million, $199.30 million and $64.96 million respectively in July 2018.

Remittances received from Malaysia, Norway, Switzerland, Australia, Canada, Japan and other countries during July 2019 amounted to US $253.01 million together as against US $243.35 million received in July 2018.

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Foreign remittances grow by 9.68pc to $21.84bn in 2018/2019

August 9, 2019
Remittances grow by 10pc to $10.7 billion in July – December

Overseas Pakistani workers have continued to make a significant contribution to the country’s economy, with remittances totaling $10.719 billion during the first half of the fiscal year 2018-2019 (July to December).
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January 10, 2019