KARACHI: The State Bank of Pakistan (SBP) Monday allowed foreign remittances on account of donation and charity through home remittance channel with immediate effect to facilitate the flood victims.

Authorized Dealers (ADs), in October 2018, were allowed to effect Business to Customer (B2C) and Customer to Business (C2B) transactions through foreign correspondent entities under their existing/new home remittance agency arrangements subject to inclusion of respective ceilings.

However, now with a view to facilitate the stakeholders in providing relief and rehabilitation support to the victims of torrential rains and flash floods across Pakistan, SBP has decided to allow the foreign remittances on account of donation and charity through home remittance channel with immediate effect.

Accordingly, some amendments have been made in the relevant sections of the Home Remittance Services guidelines.

As per the SBP directives, there will be no limit of funds under Consumer to Business (C2B) donations or charity received in designated Federal, Provincial and Local Government bank accounts. In addition, donations or charity received in bank accounts of NGOs, NPOs and Charities permitted to receive contributions from abroad in accordance with applicable law and/ or policy without any limit.

Similarly, under the Business to Business (B2B) transactions, the federal, provincial and local Government can receive donations and charity in their bank accounts without any limit. Donations and charity received in bank accounts of NGOs/NPOs/Charities are also permitted to receive contributions with no limit from abroad in accordance with applicable law and policy.

Copyright Business Recorder, 2022