Travelers out of Pakistan will now have to re-check how much foreign currency they are carrying after the government on Tuesday revised the currency limits for each trip and the annual carry limit.
The new limits will also apply to transactions made through debit or credit cards.
In a notification issued on Tuesday, the State Bank of Pakistan (SBP) said the foreign currency carrying limit for travel and cross-border transactions is to be rationalized as it seeks to curb further cash flight from the country. Is.
As per the revised limits, adults – 18 years of age or older – can carry foreign currency equivalent to $5,000 per visit on outbound flights.
Additionally, minors – those under the age of 18 – can carry foreign currency up to $2,500 per visit. The central bank also revised the annual foreign exchange limit, limiting it to $30,000 and $15,000 for adults and minors, respectively.
There will be no change in the currency limit for people traveling to Afghanistan.
The ‘per-visit limits’ will apply immediately, while the annual limits will apply from 1 January 2023.
Card Based Transaction Limits
Apart from the cash carrying limits, the SBP also increased the limits for electronic or card-based transactions.
The central bank observed that debit/credit cards are being used for transactions that are not linked to an individual’s profile or for commercial purposes.
Therefore, the State Bank advised banks to ensure that the use of debit/credit cards for international transactions is in accordance with the profile of the cardholders and only for their personal needs.
The central bank said an annual limit of $30,000 has been set for individuals for international transactions.
“It is emphasized that the purpose of debit/credit cards is to facilitate payments to individuals for personalized transactions,” the SBP insisted, adding that the limitations of these cards as well as through them Payments, both domestic and international should therefore be linked to the cardholder’s profile.
“It shall be the responsibility of the customer to ensure that his annual limit is not breached at any time.”
Banks were required to monitor limits for each individual on a consistent basis.
On the use of cards for cross-border transactions to meet legitimate business-related needs, the central bank said a framework for access to digital services is already available in para 14A of Chapter 14 of the Foreign Exchange Manual. .
Institutions intending to avail digital services can nominate a bank to avail the facility as per the relevant limits of the framework, it said. Additionally, a general framework for procurement of services by firms and companies is given in para 11, Chapter 14 of the Foreign Exchange Manual.
