SBP broadens foreign currency, rupee value accounts

March 25, 2026 (MLN): The State Bank of Pakistan has officially expanded the scope of specialized foreign currency and rupee accounts, marking a significant shift in how the country engages with international investors.

By amending the regulatory framework found in Chapters 6 and 8 of the Foreign Exchange Manual, the central bank is now allowing a much broader category of individuals and entities to access Foreign Currency Value Accounts and Non-Resident Rupee Value Accounts.

This policy change specifically targets both natural and juridical persons who fall under the definition of non-resident persons as dictated by the Income Tax Ordinance of 2001, according to an update, issued through Circular Letter.

This alignment with tax law effectively removes previous barriers, opening the door for foreign corporations and individuals who do not reside in Pakistan to maintain high-value business and personal accounts with Authorized Dealers across the nation.

This strategic move is designed to facilitate a more robust environment for foreign investment by streamlining the eligibility criteria for these "Value Accounts."

Annexure-A, details the revised rules for Foreign Currency Value Accounts (FCVA) and the newly highlighted Foreign Currency Business Value Account (FCBVA).

These regulations establish a highly digitalized environment designed to facilitate seamless cross-border financial operations for both individuals and legal entities.

Individual Participation and Resident Eligibility

The revised Paragraph 8A confirms that FCVAs are available to all non-resident individuals as defined by the Income Tax Ordinance, 2001, including Non-Resident Pakistanis and Pakistan Origin Card (POC) holders.

Notably, the eligibility extends to resident individual Pakistanis, provided they hold assets abroad as declared in their latest Federal Board of Revenue (FBR) tax returns.

While non-residents may open joint accounts with residents, these are strictly treated as non-resident accounts. Residents with foreign assets are restricted to opening joint FCVAs only with other residents.

Corporate Access for Juridical Persons

Under the new Paragraph 8B, the SBP has introduced the Foreign Currency Business Value Account (FCBVA) for "juridical persons".

This category encompasses a wide array of legal arrangements, including companies, foundations, limited liability partnerships (LLPs), trusts, and waqfs that qualify as non-residents for tax purposes.

However, the central bank has explicitly excluded sole proprietorships and unregistered partnerships from this specific facility.

Digital Operations and Investment Flexibility

Authorized Dealers for FCVA are encouraged, however for FCBVA are required to prioritize digital channels, including mobile banking and real-time currency convertibility from foreign currency to PKR for eligible debits. For both individual and business accounts, the primary source of funding remains remittances received from abroad through banking channels.

Account holders are permitted to invest these funds into specific permissible instruments, such as Government of Pakistan debt securities denominated in foreign currency and term deposits with the same bank.

Repatriation and Local Payments

One of the most investor-friendly features of these accounts is the freedom of repatriation.

Account holders can make payments or remittances outside of Pakistan to the extent of their available balance without requiring prior approval from the bank or the State Bank.

While payments can be made in PKR to persons resident in Pakistan, the regulations strictly prohibit such funds from being credited back into the original foreign currency account once the local payment is made.

Annexure-B, details the revised rules for Non-resident Pakistani Rupee Value Accounts (NRVA) and Non-resident Rupee Business Value Accounts (NRBVA). Similar to the foreign currency accounts, these rupee-denominated accounts are now open to all non-resident individuals and juridical persons such as companies, trusts, and foundations as defined by the Income Tax Ordinance, 2001.

The regulations emphasize a digital-first approach, requiring banks to provide mobile and internet banking, ATM/debit card access, and even digital reactivation for dormant accounts to ensure seamless operations from abroad.

Expanded Investment Horizon for Individuals

The NRVA offers individual non-residents an extensive range of investment opportunities within Pakistan.

Beyond standard government debt securities like T-bills and PIBs, account holders can now invest in shares quoted on the stock exchange, units of mutual funds, and even private equity or venture capital funds.

A significant highlight is the formal framework for real estate investment, allowing individuals to purchase residential or commercial property on a repatriable basis using either self-financing or bank mortgages.

While the principal investment can be repatriated at any time, capital gains from real estate are eligible for repatriation after a three-year period from the final payment or loan adjustment.

Corporate Rupee Operations and Business Flexibility

For juridical entities, the NRBVA provides a structured path to manage rupee-denominated business operations and investments.

These entities can credit their accounts through international remittances or transfers from their own foreign currency business accounts (FCBVA) held with the same bank. Permissible investments for businesses include government debt securities, listed and unlisted shares, and various SECP-regulated fund units.

To enhance operational efficiency, banks are required to provide real-time online convertibility between NRBVA and FCBVA, ensuring businesses can move funds between rupee and foreign currency sets with full transparency on applicable exchange rates.

Streamlined Repatriation and Fee Transparency

The SBP has further simplified the process for moving funds out of Pakistan by removing the requirement for Form ‘M’ for payments or repatriation from NRVAs. Account holders can remit funds abroad to the extent of their available balance without prior approval from the central bank, except in specific cases involving real estate disinvestment.

Additionally, the new rules protect consumers by prohibiting banks from charging fees to NRVA customers for remittances sent through the "Free Send Model" via foreign correspondents.

Banks are also mandated to clearly inform account holders of any applicable fees for domestic arrangements, ensuring a transparent and cost-effective experience for international investors.

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