By Staff Reporter
KARACHI: The central bank on Tuesday restricted travelers ’access to foreign-currency cash up to $5,000 per visit, the latest step to preserve precious hard currency.
The State Bank of Pakistan (SBP) said it has slashed the cash-carrying limits on foreign currency for international travel to half for a single visit and also for the annual limit for all travelers.
The annual cash carrying limit is also set at $30,000. Ceilings will be half for under-18s (minors) to $2,500 per visit and $15,000 per year.
“State Bank of Pakistan has reviewed the existing foreign currency cash-carrying limits for travel purposes, and decided to further rationalize the same,” the bank said in a statement.
The central bank has kept the limit for taking out cash foreign currencies at $1,000 per visit and $6,000 per year for Afghanistan. The same annual limit — i.e. $30,000 — now also applies to international transactions through debit and credit cards.
The central bank said the per-visit limits for travel cash would be applicable immediately, whereas the annual limits would go into effect from January 1, 2023.
“In addition, SBP has observed that debit/credit cards are being used for transactions, which are not aligned with the profile of the individual or are intended for commercial purposes. Therefore, SBP has advised banks to ensure that the use of debit/ credit cards for international transactions is aligned with the profile of card holders and for their personal needs only,” the statement said.
“It is emphasized that the purpose of debit/credit cards is to facilitate individuals in making payments for transactions that are of personal nature. The limits on these cards as well as payments through them, both domestic and international, should therefore be aligned with the profile of the cardholder.”
“It shall be the responsibility of a customer to ensure that his/ her annual limit is not breached at any time. However, banks are required to monitor these limits on a consolidated basis for each individual.”
Illegal forex operators
Separately, the central bank and Federal Investigation Agency (FIA) have jointly initiated action against illegal foreign exchange operators in the country.
A statement said a high-level meeting was held between the governor, SBP, and the director general, FIA on November 8 and the “meeting took stock of illicit foreign exchange activities and chalked out a comprehensive plan of action against illegal foreign exchange businesses being carried out in the country”.
“It was agreed during the meeting that concerted joint effort is required to apprehend and implicate the illegal foreign exchange operators and speculators across the country.”
Accordingly, SBP and FIA have jointly initiated action against illegal foreign exchange operators in Pakistan.
To this effect, joint teams from SBP and FIA shall identify and take penal/legal action against the perpetrators so as to curb speculation and the grey market,” the statement added.
The teams, while remaining within the legal mandate allowed to them by the relevant laws, would crack down on all illegal foreign exchange operators and businesses.
Banks and Exchange Companies are authorized by the SBP to carry out Foreign Exchange business in Pakistan.
Involvement of any person or entity, other than banks and Exchange Companies, in foreign exchange business is illegal under the Foreign Exchange Regulation Act, 1947. The illegal foreign exchange business also adversely affects the open market exchange rate and increases the gap between the interbank and open market exchange rates.
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