October 7, 2021 (MLN): The historic depreciation of the Pakistani Rupee (PKR) has forced the State Bank of Pakistan (SBP) to take significant measures to curb the undesirable outflow of cash foreign currency as per which transactions equivalent to US$500/- and above and outward remittances need biometric verification.
“Exchange companies will be required to conduct biometric verification for all foreign currency sales. Transactions equivalent to US$500/- and above and outward remittances need biometric verification,” the circular issued by SBP said.
“This requirement will be applicable with effect from October 22, 2021,” it added.
In addition, persons traveling to Afghanistan will be allowed to carry only US$1,000/- per person per visit with a maximum annual limit of US$6,000.
Exchange Companies will sell the cash foreign currency and make outward remittances, equivalent to US$10,000/- and above, against receipt of funds through cheque or banking channels only.
These regulatory measures will help improve documentation of the sale of foreign currency by exchange companies and place a check on the undesirable outflow of foreign currency.
