Pakistan has relaxed regulations governing bank accounts for overseas Pakistanis, allowing nearly all non-resident individuals and entities to open and operate accounts in the country, according to a notification issued by the State Bank of Pakistan (SBP).
The initiative is aimed at boosting foreign investment and increasing financial inflows. Under the revised framework, non-resident Pakistanis can invest in instruments such as Naya Pakistan Certificates (NPCs), shares at the Pakistan Stock Exchange (PSX), government securities including T-bills and Pakistan Investment Bonds (PIBs), as well as real estate, mutual funds, and pension funds.
“In order to facilitate foreign investment in Pakistan, it has been decided to broaden the scope of Foreign Currency Value Account (FCVA), Non-Resident Pakistani Rupee Value Account, Foreign Currency Business Value Account, and Non-Resident Rupee Business Value Account.
“Henceforth, all persons either natural or juridical who fall within the definition of non-resident persons under the Income Tax Ordinance, 2001 (XLIX of 2001), shall be eligible to open, operate and maintain the…accounts with Authorised Dealers [banks] in Pakistan,” the SBP notification read.
The new rules also allow authorised dealers (banks) to open Foreign Currency Value Accounts for resident Pakistanis who hold declared assets abroad, as disclosed in their latest tax returns filed with the Federal Board of Revenue (FBR).
Account holders will be able to operate these accounts through digital channels such as internet and mobile banking, as well as ATMs and debit cards. Banks may also issue cheque books where required.
Foreign Currency Business Value Accounts can be opened by various entities, including companies, associations, foundations, limited liability partnerships (LLPs), societies, trusts, and waqfs.
“However, this will not include sole proprietorships or unregistered partnerships.”
In a separate notification, the central bank stated that accounts for all non-resident Pakistanis will be opened and maintained through the Roshan Digital Account (RDA) platform, which has attracted over $12 billion in inflows over the past five years.
Another update revised the eligibility criteria for investment in Naya Pakistan Certificates, allowing all non-resident individuals and entities eligible to open the specified accounts to invest in both conventional and Shariah-compliant NPCs.
