Transaction limits of remittances revised upward

The State Bank of Pakistan (SBP) has revised some transaction limits of home remittances upward side to facilitate freelancers and pensioners. In order to further facilitate overseas Pakistanis, in October 2018, Authorized Dealers (ADs) were allowed to conduct Business to Customer (B2C) and Customer to Business (C2B) transactions through foreign correspondent entities with respective ceilings.

However, now in order to further facilitate freelancers and pensioners, the SBP has fixed fresh limits for Freelance of Computer and Information Systems Services and Pension Transactions.

Previously, under the Business-to-Customer (B2C) overseas Pakistanis were allowed to remit equivalent to up to USD 1500 per individual per month on account of Freelance of Computer and Information Systems Services, while now the limit has been increased by $3500. As per fresh limits, overseas Pakistanis are allowed to remit equivalent to up to USD 5,000 per individual per month for Freelance of Computer and Information Systems Services.

The SBP has also increased the limits for pension transactions from Rs 250,000 per individual per month to USD 2,500 per individual per month.

In addition, under Business-to-Customer (B2C) fresh limit of other freelance services have been fixed equivalent to USD 5,000 per individual per month up from USD 1500.

SBP has advised authorized dealers to bring the same to the notice of all their constituents, while all other instructions on the subject shall remain unchanged.

It may be mentioned here that SBP has already warned the AD's failure to comply with the instructions may attract regulatory penalty under Section 23K of the Foreign Exchange Regulation Act, 1947. ADs will also ensure that foreign correspondent entities have a robust infrastructure and the capacity to comply with legal/regulatory requirements pertaining to AML/CFT.