The State Bank of Pakistan (SBP) Tuesday allowed Authorised Dealers remit of up to $5000 foreign exchange on account of medical treatment/education of resident Pakistanis, without prior approval from the central bank. The SBP through FE Circular No 08 of 2015 has invited attention of the Authorised Dealers towards Chapter XVII of the Foreign Exchange Manual which, inter alia, sets out rules for release/remittance of foreign exchange to/on behalf of individuals for various purposes.
In order to facilitate resident Pakistanis to meet their individual foreign exchange needs related to medical treatment and studies/education abroad, SBP has decided to amend paragraphs 24 and 39 of the Chapter XVII of the Foreign Exchange Manual. As per new Para-24, which relate to remittances for medical treatment abroad, Authorised Dealers may remit foreign exchange up to $50,000 or equivalent in other foreign currencies on account of medical treatment of resident Pakistanis only after satisfying themselves about bona fides of the transaction. Remittances should be sent directly to the account of concerned reputable foreign hospital via SWIFT, telegraphic transfer or demand draft after obtaining documents including, a revised appendix duly filled in by the patient/next of kin/sponsor, invoice/estimate of the foreign hospital and a 'self-declaration' from the patient, his/her next of kin or from sponsor declaring amount of foreign exchange essentially required for treatment abroad.
In addition, Authorised Dealers may also release cash foreign exchange equivalent to $5,000 each to the patient and one attendant which should be duly endorsed on his/her/their passport(s). The SBP has also announced revision of Para-39 of remittances for studies abroad. Under the revised directives remittances for studies abroad, SBP has allowed Authorised Dealers to remit foreign exchange to educational institutions abroad on behalf of students desirous of studying in accredited and recognised foreign institutions/universities up to $70,000/- or equivalent in other foreign currencies per student per calendar year on account of application/processing charges, tuition fee, living expenses, etc
In cases where students are required to remit application/processing charges for admission in the foreign educational institutions, Authorised Dealers may make such remittances to the concerned foreign educational institution on production of documentary evidence to the satisfaction of the bank showing the amount of application/processing charges. There is no restriction on the number of institutions to which a student can apply for admission.
While in case of remittance of tuition fee, living expenses, etc, Authorised Dealers may make remittances for tuition fee, living expenses and other dues (health, insurance, union, sports, library fees, etc) on behalf of students desirous of studying abroad who have got admission in a foreign educational institution on the basis of the required documents.
Similarly, dues, including tuition fee, which are payable to the foreign educational institution should be remitted directly to the account of the educational institution via SWIFT, telegraphic transfer or demand draft and not remitted/released to the student. Living or miscellaneous expenses as indicated by the respective foreign institution/university, if not being remitted to the institution, can, however, be sent to the student himself via SWIFT, telegraphic transfer or demand draft. In order to meet the initial expenses related to boarding/lodging and/or other requirements of the student, Authorised Dealers can release cash foreign exchange equivalent to $5,000 to the student which should be endorsed on his/her passport.
In case of foreign exchange requirements for medical treatment and studies abroad in excess of the above limits, the concerned Authorised Dealer will forward the case to the Director, Foreign Exchange Operations Department, SBP-BSC, Head Office, Karachi along with justification and documentary evidence for consideration. Authorised Dealers will retain all related record including the documents submitted by the applicant as mentioned in the revised paragraphs 24 and 39 above for on-site inspection by the State Bank's Inspection Team, the SBP instructed.
Comments
Comments are closed.