ISLAMABAD: State Bank of Pakistan today notified reduction in the limit of carrying foreign currency for foreign trip to $5,000 because of low foreign exchange reserves and to ease pressure on dollar-rupee exchange rate.
The central bank today urged the passengers traveling out of Pakistan to recheck how much foreign currency they are carrying after the government revised currency limits for each trip on Tuesday (Nov 8), and annual carry limits as well.
Earlier, each adult passenger was allowed to carry $10,000 for foreign visit. Also, the new limits will also apply to transactions to be conducted through debit or credit cards abroad.
The State Bank of Pakistan (SBP) said to rationalize limits for foreign exchange cash carrying for travel and cross-border transactions as it seeks to restrict further cash flight from the country.
As per the revised limits, adult individuals, 18-years-of-age and above, can carry foreign currency equivalent to $5,000 per visit on outbound flights.
Moreover, minors, below 18-years-of-age, can carry foreign currency equivalent to $2,500 per visit.
The central bank also revised the annual ceiling for foreign currency, limiting it to $30,000 and $15,000 for adults and minors, respectively.
The limit for currencies for people traveling to Afghanistan will remain unchanged.
The ‘per visit limits’ will be applicable immediately, while the annual limits will come into force from January 1, 2023.
Limits on card-based transactions
Apart from limits on carrying cash, SBP also extended the limits to electronic or card-based transactions as well.
The central bank observed that debit/credit cards are being used for transactions that are not aligned with the individual’s profile or are intended for commercial purposes.
Hence, the SBP advised banks to ensure that the use of debit/ credit cards for international transactions is aligned with the profile of cardholders and for their personal needs only.
The central bank said that an annual limit of $30,000 has been prescribed for individuals for international transactions.
“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 SBP insisted, adding that 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.”
Banks were required to monitor the limits on a consolidated basis for each individual.
On the use of cards for cross-border transactions to meet legitimate business-related needs, the central bank said that a framework for acquiring digital services was already available in Para 14A, in Chapter 14 of the Foreign Exchange Manual.
It said that entities intending to acquire digital services could designate a bank to use this facility per the framework’s respective limits. Moreover, a general framework for acquiring services by firms and companies has been given in Para 11, Chapter 14 of the Foreign Exchange Manual.
