EPD Circular Letter No. 07 of 2019

April 19, 2019

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

Dear Sirs/Madam,

Clarification relating to Foreign Currency Accounts

Attention of Authorized Dealers is invited to the second proviso of sub-section (4) of the Section (5) of the Protection of Economic Reforms Act (PERA), 1992 which, interalia, states as under:

“provided that no cash shall be deposited in an account of a citizen of Pakistan resident in Pakistan, unless the account holder is a filer as defined in the income Tax Ordinance, 2001 (XLIX of 2001)”

2. It has come to our notice that some Authorized Dealers are not allowing non-residents to open and maintain foreign currency accounts on the pretext that they are not appearing as ‘filer’ in the Active Taxpayer’s List of FBR.

3. However, it is evident from the aforementioned Proviso that the instructions, contained therein, are not applicable to non-residents.

4. An updated copy of the PERA, 1992 is enclosed herewith for information and meticulous compliance.

Encl: As above.

Yours truly,

Sd/-
(Arshad Mehmood Bhatti) Director