SBP announces a significant relaxation for the banking sector
The State
Bank of Pakistan (SBP) has announced a significant relaxation for the
banking sector by simplifying procedures for remitting payments abroad, a move
aimed at cutting delays and improving operational efficiency.
Under the revised framework, banks are now
permitted to remit salaries, professional fees, and related payments for
overseas-based directors, chairpersons, Sharia advisers, and scholars without
prior approval from the central bank’s Foreign Exchange Department.
Previously, such transactions required
case-by-case clearance, often slowing routine financial obligations. The new
policy authorizes banks, as authorized dealers, to process these payments
independently once all required documentation is complete.
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SBP officials say the change will streamline compliance while preserving regulatory oversight, as banks must continue to maintain accurate records and strictly follow foreign exchange regulations for all overseas transactions.
The relaxation is also expected to benefit
Islamic banking by ensuring timely payments to foreign Sharia experts, whose
input is essential for governance, product approval, and regulatory compliance.
Announced
from Islamabad, the decision reflects SBP’s broader efforts to modernize
financial regulations, facilitate smoother cross-border transactions, and
reduce administrative burdens on Pakistan’s banking industry.
Source:
Daily Times