SBP reduces limit for travellers carrying foreign currency abroad

KARACHI: State Bank of Pakistan (SBP) has revised the existing limits for carrying foreign currency outside the country for travel purposes.

As per the revised limits individuals aged 18 years and above (adults) can now carry foreign currency equivalent to $5,000 per visit, while those below the age of 18 years (minors) can carry equivalent to $2,500 per visit.

The annual ceiling to take out foreign currency for adults and minors shall be $30,000 and $15,000 respectively.

The central bank said the existing limits prescribed for taking out foreign currencies for travelling to Afghanistan shall remain unchanged.

It said the limits per visit will be applicable immediately, while the annual limits will be applicable from January 1, 2023.

Earlier the limit for taking out foreign currencies was up to $10,000 unconditionally per visit. The annual limit for carrying foreign currency was $100,000.

According to rules, taking out Pakistan currency exceeding Rs3,000 is not permitted and in case of departing for India, a maximum of Rs500 is permitted.

Debit/credit card transactions

In addition, the SBP said it observed that debit/credit cards are being used for transactions, which are not aligned with the profile of the individual or are intended for commercial purpose.

Therefore, the SBP has 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.

It said an annual limit of $30,000 has been prescribed for individuals for international transactions. It emphasized that the purpose of debit/credit cards is to facilitate individuals in making payments for transactions that are of personal nature.

The limits on these cards as well as payments through them, both domestic and international, should therefore be aligned with the profile of the card holder, it added.

The central bank said it shall be the responsibility of a customer to ensure the annual limit is not breached at any time. It added that banks are required to monitor these limits on consolidated basis for each individual.

Regarding the use of cards for cross border transactions for meeting legitimate business related needs, it said a framework for acquisition of digital services is already available

It said entities intending to acquire digital services can designate a bank to use this facility as per respective limits defined in the framework.

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