Who sets the foreign exchange rules in Pakistan
Foreign exchange in Pakistan is controlled under the Foreign Exchange Regulation Act (FERA). The State Bank of Pakistan (SBP) administers this law. It issues circulars and keeps the Foreign Exchange Manual, which collects the rules that banks and exchange companies must follow.
As an individual, you deal with these rules through:
- Authorised dealers. These are banks permitted to deal in foreign exchange. They open foreign currency accounts, send remittances abroad and process card payments in other currencies.
- Exchange companies. These are licensed firms that buy and sell foreign currency cash and handle certain small remittances.
The bank or exchange company applies the SBP rules to your transaction. If a payment is refused or needs documents, the reason usually comes from these rules or from the bank's own checks.
The SBP sets the policy rate as well, which affects deposit and loan rates. The latest decision on record: SBP policy rate raised by 50 bps to 12% with effect from 27.10.2026 (MPC). For more on rates and the economy, see SBP rates and economy.
Foreign Exchange Manual basics
The Foreign Exchange Manual is a reference document, not a guide for the public. It is organised by type of transaction. Typical areas include:
- foreign currency accounts of residents and non-residents
- remittances abroad for education, medical treatment, travel and family support
- exports and imports, and the repatriation of export proceeds
- foreign investment into and out of Pakistan
- use of debit and credit cards outside Pakistan
The SBP updates the Manual through circulars. Limits, allowed purposes and document requirements can change. This page does not quote any limits. Before you plan a transfer, ask your bank for the current rule or read the latest SBP circular on the official SBP website.
Foreign currency accounts
A foreign currency account holds money in a currency such as US dollars, euros or pounds instead of rupees. Pakistani banks offer these accounts to residents and to non-residents under SBP rules.
Points to check with your bank before you open one:
- Source of funds. Banks often ask where the foreign currency comes from, for example a remittance from abroad, export income or cash you declared on arrival.
- Allowed use. Some balances can be sent abroad for permitted purposes. Others are restricted. The bank applies the current SBP conditions.
- Profit and charges. Rates, account fees and any Islamic banking options differ between banks.
- Cash withdrawals. Taking out foreign currency cash may be limited or carry charges.
For tax and Islamic banking questions linked to accounts, see Payments, tax, Islamic banking.
Sending money abroad from Pakistan
People often search for a single "send money abroad Pakistan limit". In practice there is no one number. The SBP sets different rules for each purpose, and the bank checks the purpose and documents.
Common legitimate purposes include:
- tuition fees and living costs for study abroad
- medical treatment abroad
- travel
- family maintenance
- payment for goods or services from a foreign supplier
What a bank usually asks for:
- a stated purpose of the transfer
- supporting documents, such as an admission letter, an invoice or a hospital estimate
- your identity documents and, in some cases, tax details
Any state bank forex limit that applies to you depends on the purpose, your status as a resident or non-resident, and the current circular. Your bank can confirm it. Do not rely on old figures from social media or forums.
Card spending abroad
Pakistani debit and credit cards can often be used for payments in foreign currency, both when travelling and when buying online from foreign sites. The bank converts the amount into rupees.
Things to understand:
- Exchange rate. The bank applies its own card conversion rate. It can differ from the rates you see quoted elsewhere. For reference rates, see SBP exchange rates and Exchange rates.
- Charges and taxes. Foreign currency card transactions may carry bank fees and taxes. Check the current schedule with your bank.
- Limits. Banks can cap foreign currency card spending under SBP rules or their own policy. Some cards need international use switched on first.
- Blocked merchants. Banks can decline payments to categories of merchants that are not permitted, including offshore trading platforms (see below).
Offshore forex, margin and CFD trading
This is the part where the rules are most direct. A CFD (contract for difference) is a contract that pays the difference in an asset's price. Margin trading means you put up a deposit and trade a larger amount with borrowed exposure (leverage).
The SBP has addressed offshore platforms twice in the same clarification:
- On payments: per the SBP, remitting foreign exchange to overseas forex/margin/CFD platforms is not allowed through any payment channel (FERA s.5(1)).
- On residents: per the SBP, the purchase of offshore forex/margin/CFD products by Pakistani residents violates section 4(1) of FERA 1947.
The SECP, which regulates securities and futures, takes the same line:
- Supervisor: Securities and Exchange Commission of Pakistan (SECP), with trading in listed securities and commodities only via SECP-licensed securities and futures brokers.
- Status of offshore platforms: per the SECP, offshore forex/CFD platforms operate without regulatory approval in Pakistan.
- Protection: per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse.
For locally regulated futures activity, the law requires a licence. On the licensing rule, under the Futures Market Act 2016, s.47(1), no one may carry on a regulated activity (futures broker, adviser, representative) without an SECP licence. The penalty side: under the Futures Market Act 2016, s.104(3), operating without a licence carries, for an individual, a fine of up to PKR 250 million or up to 3 years' imprisonment, or both. To check a broker, note that per the SECP, lists of licensed brokers are on the PSX and PMEX websites.
Separate from the legal position, leveraged forex and CFD trading carries a high risk. Losses can be fast and can exceed what you expected to risk. For a fuller legal discussion, read Is forex legal? and SECP explained.
Warnings, scams and complaints
The SECP publishes warnings about named platforms. Its record includes SECP warnings by press release naming platforms (Quotex 09.04.2025; IBKR look-alikes, IGIL Securities, BMA Capital No.108 etc. 22.05.2025; Hillhouse Capital, S-169 Wharton 13.01.2026), none of which names Exness. Scams often promise fixed returns, push you to send money through personal accounts, or contact you through messaging apps. See Investment scams.
Where to go:
- Problem with a bank transaction: complain to the bank first. If it is not resolved, you can take it to the Banking Mohtasib Pakistan.
- Fraud or cybercrime: report it to the FIA. Steps are on Report fraud.
- Unlicensed investment or trading offers: report them to the SECP.
For an overview of all regulators, see Law and regulators.
How to check the current rules yourself
- Read the latest SBP circulars and the Foreign Exchange Manual on the official SBP website.
- Ask your bank's foreign exchange or remittance desk about your specific purpose.
- Check broker licences on the PSX and PMEX lists through the SECP's guidance.
- Note the date you checked. Rules and limits change.
Frequent questions
What are the SBP forex rules for individuals in simple terms?
Foreign exchange is controlled under FERA, and the SBP sets the detailed rules. Banks and exchange companies apply them to your accounts, transfers and card payments.
Is there a fixed limit for sending money abroad from Pakistan?
There is no single limit. It depends on the purpose, your resident status and the current SBP circular. Ask your bank for the rule that applies to your transfer.
Can I open a foreign currency account in Pakistan?
Banks offer foreign currency accounts under SBP rules. Check the eligibility, source-of-funds requirements and charges with your bank.
Why was my card payment to a foreign website declined?
Common reasons are international use not switched on, a spending cap, or a merchant type that is not permitted, such as an offshore trading platform. Your bank can tell you the reason.
Can I send money to an overseas forex or CFD platform?
According to the SBP, remitting foreign exchange to overseas forex, margin or CFD platforms is not allowed through any payment channel.
Where can I complain about a bank's foreign exchange transaction?
Complain to the bank first. If the issue is not resolved, you can approach the Banking Mohtasib Pakistan.