The Chief Executives of all

Exchange Companies

Dear Sir/Madam,

Instructions Related to Import of Cash US Dollars

      Attention of Exchange Companies is invited towards the instructions contained in EPD Circular Letter No. 11 dated July 25, 2023 and EPD Circular Letter No. 3 dated March 29, 2024 whereby the Exchange Companies were, inter alia, allowed to import cash US Dollars up to 50% of the value of their export consignments till June 30, 2024.

  1. In order to ensure adequate supply of cash USD in open market, the validity of above instructions is hereby extended till June 30, 2025.
  2. All other terms and conditions of abovementioned circular letters shall remain unchanged.

 

 

Yours truly,

-Sd/-

(Dr. Asif Ali)

Director

The Chief Executives

All Exchange Companies.

Dear Sir/Madam,

Promotion of Home Remittances

      Please refer to EPD Circular Letters No. 03 and No.07 of 2022 regarding the captioned subject.

  1. With a view to further incentivize Exchange Companies (ECs) in enhancing their home remittance mobilization efforts, it has been decided to revise the current incentive structure as follows:

i.  Fixed Component: ECs will be provided a base rate of PKR 2 for each USD of home remittances surrendered to SBP designated bank(s);

ii. Variable Component:

a.  ECs will be paid PKR 3 for each incremental USD surrendered to SBP designated bank(s), for growth in home remittances up to 5% or USD 25 million (whichever is lower), in comparison to previous year.

b.  Further, PKR 4 per USD will be paid against incremental remittances above 5% or over USD 25 million, in comparison to previous year.

  1. The performance of ECs will be evaluated by SBP on a monthly basis and payments would be reimbursed accordingly. Any required adjustment in payments, on a consolidated basis, would be made in the last quarter of the Fiscal Year.
  2. The above revisions shall take effect from October 01, 2024. The operational instructions related to implementation of the incentive scheme for ECs will be communicated separately.

Yours truly,

(Dr. Asif Ali)

Director

The Chief Executives of all

Exchange Companies

Dear Sir/Madam,

Issuance of Regulatory Framework for Exchange Companies

      Attention of Exchange Companies (ECs) is invited towards the Exchange Companies Manual (ECM), consisting regulatory instructions and amendments, issued from time to time through FE Circulars/EPD Circular Letters, for compliance.

  1. The State Bank of Pakistan (SBP) has undertaken a comprehensive review of the existing regulatory instructions. Accordingly, a consolidated and updated “Regulatory Framework for Exchange Companies (RFEC)” has been developed. The framework elaborates corporate governance structures, sets forth internal controls & IT systems requirements, and strengthens the supervisory & enforcement regime. Further, it updates reporting requirements and provides a single, unified source of regulatory guidance for the ECs.
  2. The attached framework will replace the existing Exchange Companies Manual and will become effective from January 01, 2025. In order to ensure full compliance with the attached framework, ECs will formulate and align their policies, procedures and systems by June 30, 2025.

 

Enclosed: Regulatory Framework for Exchange Companies

 

Yours truly,

-Sd/-

(Dr. Asif Ali)

Director

State Bank of Pakistan Rules for Remittance

  • Original and current CNIC/NICOP/POC/ARC/Passport with valid visa is required for identity verification for all transactions.
  • Original and current CNIC/NICOP/POC/ARC/Passport with valid visa along with copy must be require all transactions.
  • Name, address, contact number should mentioned for all transactions.
  • Biometric verification (BV) is required for all Pakistani Nationals who are conducting Remittance outward and TTs transactions. In case if the BV cannot be obtained due to age issue or any other medical reason that has resulted in the loss gyrates then according to the LHC judgement transaction can be performed while obtaining NADRA verisys from the customer instead Bio Metric verification.
  • Customer who are eligible for bio metric verification has either to perform the BV or to submit the original E-Sahulat BV slip (where BVS is not available) for conducting each transaction. Same rule applies for customer who are performing the transaction on NADRA Verisys.
  • For any RO/TT transaction having value USD 1,000 or above customer must have to provide the valid reason for conducting the reason which should be supported with the appropriate documentary evidence. Furthermore, customer has to submit the signed undertaking in which he categorically states that he has not remitted out more than USD 10,000/ per day and USD 100,000/ per annum.
  • Each customer can send USD 10,000/per day or equivalent. Please note that for conducting transaction having value USD 2,000 or equivalent in other currency, customer has to conduct the transaction through cheque.
  • Any individual can send upto USD 100,000/annum.
  • EDD is required for all customers conducting RO/TT transaction having value or above USD 3,000.
  • EDD is required for all customers conducting RI transaction having value or above PKR 500,000.
  • Management approval is required for all critical customers that require EDD.
  • Management approval is required for conducting transaction with the PEP and for customers who are from high-risk jurisdictions.
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