Earlier on October 6, the federal government issued Foreign Currency Accounts Rules, 2020 under the provisions of Protection of Economic Reforms Act (PERA), 1992, in a bid to stop money laundering. On why an SRO was issued by the Ministry of Finance, when there is no change in existing foreign exchange regulations, the central bank said that PERA was amended in 2018. The amendments made in PERA included that the federal government may make rules governing deposits into and withdrawals from the foreign currency accounts. The SBP also said there is no change in the state bank’s existing regulations regarding foreign currency accounts, and these regulations do not conflict with the rules issued by the Ministry of Finance. Freelancers that are engaged in export of their services and receive payment in foreign currency can open special foreign currency retention accounts and retain up to 35pc of proceeds from export of services received in foreign currency accounts.

Source: Pakistan Today October 11, 2020 14:50 UTC