Pakistan expands foreign currency, rupee account access for investors

The State Bank of Pakistan has expanded eligibility criteria for key foreign currency and rupee-denominated accounts in a move aimed at facilitating greater foreign investment into the country, according to a regulatory update issued to authorized dealers.

The central bank directed authorized dealers to refer to revised provisions in Chapters 6 and 8 of the Foreign Exchange Manual, which govern the opening and maintenance of foreign currency accounts and non-resident rupee accounts, respectively.

Under the new policy, all individuals and entities classified as non-resident under the Income Tax Ordinance, 2001, will now be eligible to open and operate a broader range of accounts. These include Foreign Currency Value Accounts (FCVA), Non-Resident Pakistani Rupee Value Accounts (NRVA), Foreign Currency Business Value Accounts (FCBVA), and Non-Resident Rupee Business Value Accounts (NRBVA).

Previously, access to some of these account categories was more restricted. The central bank said the change is intended to streamline procedures and make Pakistan a more attractive destination for foreign investors.

The amendments to the Foreign Exchange Manual have been incorporated through updated provisions in the relevant chapters, with detailed changes outlined in annexures provided to banks.

Authorized dealers have also been instructed to ensure full compliance with all applicable regulatory frameworks, including anti-money laundering, countering the financing of terrorism, and counter-proliferation financing requirements set by the State Bank of Pakistan.

The move comes as Pakistan seeks to attract increased foreign capital inflows and improve ease of doing business for overseas investors and non-resident Pakistanis.