ISLAMABAD-The Ministry of Finance has notified Foreign Currency Account Rules 2020 that stated that a foreign currency account would not be credited with any foreign exchange purchased from an authorised dealer, exchange company or money changer except as allowed by the SBP (State Bank of Pakistan) through general or special permission under any law.

The ministry of finance has stated the Rules would come into force at once. According to the SRO uploaded on the website on Friday, the ministry stated that the federal government was making those rules in exercise of the powers by Section 11, and second proviso to sub-section (4) of Section 5 of the Protection of Economic Reforms Act, 1992.

The rules governing the foreign currency account of individual noted that a foreign currency account of an individual may be credited with the remittance received from abroad through banking channel except; (a) payment of goods exported from Pakistan; (b) payment for services rendered in or from Pakistan; (c) proceeds of securities issued of sold to non-resident, and; (d) any foreign exchange borrowed from abroad under any general or special permission of the State Bank of Pakistan; provided that the SBP may issue any general or special permission for credit the account. (2) A foreign currency account may be credited through transfer from other individual foreign currency account. (3) Proceeds realised on account of profit, return and principal amount of investment made in any foreign currency denominated or foreign currency linked scheme of government of Pakistan may be credited into the account. (4) A foreign currency account shall not be credited with any foreign exchange purchased from an authorised dealer, exchange company or money changer except as allowed by the SBP through general or special permission under any law.

According to the Rules, foreign currency brought from abroad and duly declared at the point of entry into Pakistan with the Pakistan Custom may be credited in the account. There would be no restriction on cash withdrawal or transfer from the foreign currency account, the Rules stated.