KARACHI: The State Bank has tightened rules for resident Pakistanis to meet their individual foreign exchange needs related to medical treatment and studies abroad, and has imposed some conditions on money transfer.

The State Bank issued a circular to all banks on Tuesday stating that authorised dealers may remit foreign exchange up to $50,000 or equivalent in other foreign currencies on account of medical treatment of resident Pakistanis only after satisfying themselves about bona fides of the transaction.

“Remittances should be sent directly to the account of concerned reputable foreign hospital via Swift, telegraphic transfer or demand draft,” said the SBP circular.

It further said that banks should remit foreign exchange after obtaining invoice and estimate of the foreign hospital.

A ‘self-declaration’ from the patient, his or her next of kin or from sponsor declaring amount of foreign exchange essentially required for treatment abroad should also be obtained.

In addition, authorised dealers may also release cash in foreign exchange equivalent to $5,000 each to the patient and one attendant which should be duly endorsed on his/her/their passports.

Authorised dealers may remit foreign exchange to educational institutions abroad on behalf of students desirous of studying in accredited and recognised foreign institutions or universities up to $70,000 or equivalent in other foreign currencies per student per calendar year on account of application or processing charges, tuition fee, living expenses, etc, in accordance with the procedure.

In case where students are required to remit application/processing charges for admission in the foreign educational institutions, authorised dealers may make such remittances to the concerned foreign educational institution on production of documentary evidence to the satisfaction of the bank showing the amount of application or processing charges. There is no restriction on the number of institutions to which a student can apply for admission.

The authorised dealers may make remittances for tuition fee, living expenses and other dues (health, insurance, union, sports, library fees, etc) on behalf of students desirous of studying abroad who have got admission in a foreign educational institution on the basis of the documents, like application form duly filled in by the student, parent or guardian.

Also a copy of CNIC, Form ‘B’ of the student and CNIC of the parent or guardian, copy of passport of the student, letter of admission from foreign educational institution and letter or cost sheet from foreign educational institution showing break-up of expenses are required.

In order to meet the initial expenses related to boarding/lodging and/or other requirements of the student, authorised dealers can release cash foreign exchange equivalent to $5,000 to the student which should be endorsed on his/her passport.

In case of foreign exchange requirements for medical treatment and studies abroad in excess of the above limits, the authorised dealer concerned will forward the case to the director, Foreign Exchange Operations Department, SBP-BSC, Head Office, Karachi, along with justification and documentary evidence for consideration.

Published in Dawn, July 1st, 2015

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