Clarification on Foreign Currency Accounts Rules 2020 – External Relations Department

ERD/M&PRD/PR/01/2020-104 October 11, 2020

On 6th October 2020, the Federal Government issued Foreign Currency Accounts Rules, 2020 under
the provisions of the Protection of Economic Reforms Act, 1992. There has been no change in the general
or special permissions given by the State Bank to individuals under the foreign exchange regulations.
According to paragraph iv, Chapter 6 of the Foreign Exchange Manual, foreign currency accounts can
be fed by remittances received from abroad, travelers’ cheques issued outside Pakistan and
encashment of securities issued by Govt. of Pakistan. A foreign currency account of a citizen of Pakistan
resident in Pakistan can also be fed with cash foreign currency only if the account holder is a filer as
defined in Income Tax Ordinance, 2001.
The recently issued rules aim to provide a regulatory framework for the operation of individual foreign
currency accounts. Such a framework represents a continuation of the State Bank of Pakistan’s efforts
to strengthen the foreign exchange regime and make it more market-oriented. Looking ahead, SBP will
continue to take steps to facilitate greater use of banking channels for individuals to meet all their
foreign exchange needs.