State Bank of Pakistan has announced a major relaxation for the banking sector by simplifying rules for remitting payments abroad, aiming to reduce delays and improve operational efficiency across regulated institutions.
Under the revised framework, banks can now transfer salaries, professional fees, and related payments for overseas-based directors, chairpersons, Sharia advisors, and scholars without seeking prior approval from the central bank’s Foreign Exchange Department.
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Previously, such remittances required case-by-case clearance, often slowing down routine financial obligations. However, the new policy empowers authorized dealers to process payments independently once all required documentation is properly completed.
Officials believe this change will streamline compliance procedures while maintaining regulatory oversight, as banks must still ensure accurate records and adherence to foreign exchange rules before executing any overseas transaction.
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Moreover, the move is expected to support Islamic banking operations by facilitating timely payments to foreign Sharia experts, whose services are critical for governance, product approval, and regulatory compliance within the sector.
The decision, announced from Islamabad, reflects the central bank’s broader effort to modernize financial regulations, encourage smoother cross-border transactions, and reduce administrative burdens on Pakistan’s banking industry.