Circulars/Notifications - Exchange Policy Department  
 EPD Circular Letter No. 12 of 2021

August 27, 2021

The Presidents/Chief Executives of
All Authorized Dealers in Foreign Exchange

Dear Sir/Madam,

Borrowings by individual Non-Resident Pakistanis and Foreign Nationals

          Attention of Authorized Dealers (ADs) is invited to Para 3, Chapter 19 of the Foreign Exchange Manual, in terms of which ADs have general permission to grant loan to individual non-resident Pakistanis and resident foreign national in local currency in Pakistan.

2.       In this respect, it has been decided to facilitate non-resident Pakistan Origin Card (POC) holders to avail consumer financing from banks in Pakistan. Accordingly, the above Para 3 ibid shall be replaced with the following:

“The Authorized Dealers have general permission to provide loan to individual non-resident Pakistanis and non-resident Pakistan Origin Card (POC) holders in local currency in Pakistan, subject to observance of the relevant Prudential Regulations and compliance of ‘AML/CFT’ requirements. The purpose of borrowing must be clear, legitimate and duly documented. However,  any such lending by the Authorized Dealers shall be subject to the following conditions:

  1. The loan shall be liquidated by the borrowers through remittances from abroad in foreign exchange through normal banking channel or by debit to their repatriable PKR and foreign currency accounts which must be fed through foreign remittances.

  2. Sale proceeds of property, moveable or immoveable, created from such lending shall not be eligible for repatriation, unless otherwise allowed by SBP through general or specific permission.

Further, Authorized Dealers may also grant rupee loans to resident individual foreign nationals, except for purchasing immovable property and the purposes either restricted by the State Bank or any other prevalent law.

3.        All other instructions on the subject matter shall remain unchanged. ADs are advised to bring the above instructions to the knowledge of all their constituents for meticulous compliance.


Yours truly,


(Arshad Mehmood Bhatti)

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