What this section covers
Anyone who saves, invests or trades in Pakistan deals with three practical questions: how money is sent and received, what tax applies, and whether the bank and products fit Shariah principles. This section covers all three in plain terms.
The pages describe how the Pakistani system works in general. They are not tax, legal or religious rulings. For your own case, check with your bank, a qualified tax adviser or a scholar you trust.
Ready to try it on a real or demo account?
Partner link · trading carries a high risk of loss
Payment methods in Pakistan
Most payments in Pakistan use a few local rails:
- Bank transfer. A payment from one account to another. It can stay inside one bank or go to a different bank.
- IBFT (Inter Bank Funds Transfer). The common way to send money between accounts at different Pakistani banks through internet or mobile banking.
- Raast. The State Bank of Pakistan's instant payment system. It lets you send money using an account number or a Raast ID linked to your mobile number. Our Raast payments page explains how the ID works and what to check before you send.
- Mobile wallets. Branchless banking accounts such as JazzCash and Easypaisa. You use them from a phone, and agents handle cash-in and cash-out.
Start with Payment methods. It compares these rails, explains the terms banks use, and lists what to check, such as limits, charges and the name on the account. Banks set their own limits and charges and change them over time, so confirm the current terms with your bank or wallet provider.
Payments abroad and offshore platforms
Sending money abroad follows foreign exchange rules. On remittances, per the SBP, remitting foreign exchange to overseas forex/margin/CFD platforms is not allowed through any payment channel (FERA s.5(1)). Also, per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse. Read Law and regulators before you decide anything. Leveraged forex and CFD trading can also lose money quickly, whichever platform you use.
Tax in Pakistan and filer status
In everyday banking, "filer" means a person whose name appears on the Active Taxpayers List (ATL). The Federal Board of Revenue (FBR) publishes this list. Filer status affects how much withholding tax banks and other institutions deduct on many transactions. Non-filers usually pay more.
- Filer status (ATL) explains what the list is, how to check your status, and why it matters for bank profit, property and vehicle deals.
- Tax on foreign income covers how a resident's income from abroad is treated in general and what records to keep for your return.
Tax law changes with each budget. Use these pages to understand the concepts, then confirm current rates with the FBR or a tax adviser.
Islamic banking in Pakistan
Islamic banks and Islamic windows of conventional banks offer accounts and financing based on contracts such as Mudarabah, Musharakah, Murabaha and Ijarah. These contracts aim to avoid riba (interest). Profit is shared or built into a sale or lease instead of being charged as interest.
- Islamic banking explains these contracts, how a profit rate on a deposit differs from interest, and what the Shariah board of a bank does.
- Riba judgment summarises the Federal Shariat Court's decision on interest and what it means for the banking system.
- For questions about trading itself, such as swaps, leverage and speculation, see Islamic finance. To calculate your annual dues, use the Zakat calculator.
How to use this section
If you are new: read Payment methods first, then Filer status (ATL). Together they explain most of what your bank asks of you. Then read Islamic banking if you want a Shariah-compliant account.
If you are experienced: go to Tax on foreign income for reporting questions. Read Law and regulators for the foreign exchange rules, and use SBP exchange rates when you need official reference rates for your records.
Frequently asked questions
What is Raast?
Raast is the State Bank of Pakistan's instant payment system. It moves money between participating banks and wallets, using an account number or a Raast ID linked to your mobile number.
How do I know if I am a filer?
Check whether your name and CNIC appear on the FBR's Active Taxpayers List. Our filer status page explains how.
Is a mobile wallet the same as a bank account?
Not exactly. A wallet is a branchless banking account with its own limits and rules. Check your provider's current terms.
Is profit from an Islamic bank the same as interest?
No. It comes from profit-sharing, sale or lease contracts approved by the bank's Shariah board. The Islamic banking page explains the difference.
Do these pages replace a tax adviser?
No. They explain general rules. For your own return or a large transaction, ask a qualified tax adviser.
