Foreign Exchange Declaration (Pakistan)
FOREIGN EXCHANGE DECLARATION
Under the Foreign Exchange Regulation Act 1947 | State Bank of Pakistan Foreign Exchange Manual 2002
1. DECLARANT PARTICULARS
Full Name: [Declarant Name]
CNIC / NICOP / NTN: [Declarant CNIC/NTN]
Address: [Declarant Address]
Type of Declarant: [Declarant Type]
2. TRANSACTION DETAILS
Nature of Transaction: [Transaction Type]
Foreign Currency: [Foreign Currency]
Amount (Foreign Currency): [Foreign Amount]
PKR Equivalent: [PKR Equivalent]
Date of Transaction: [Transaction Date]
Authorised Dealer: [Authorised Dealer]
3. SOURCE AND PURPOSE
Source of Foreign Exchange: [Source Of Funds]
Purpose of Transaction: [Purpose Of Transaction]
Supporting Documents: [Supporting Documents]
4. AML/CFT DECLARATION
I/We, the declarant, hereby solemnly declare that:
a) The foreign exchange declared above has been acquired/is being remitted through lawful means and does not represent proceeds of money laundering, terrorism financing, or proliferation financing as defined under the Anti-Money Laundering Act 2010 and the Anti-Terrorism Act 1997.
b) All information provided in this declaration is true, accurate, and complete to the best of my/our knowledge, and I/we undertake to provide additional documentation to the authorised dealer or the State Bank of Pakistan (SBP) on request.
c) This transaction complies with the Foreign Exchange Regulation Act 1947, the SBP Foreign Exchange Manual 2002, and all applicable SBP Exchange Policy Department (EPD) Circulars as of the date of declaration.
d) I/We am/are aware that providing false information in this declaration is an offence under FERA 1947 and the Anti-Money Laundering Act 2010, attracting penalties including fines, confiscation of foreign exchange, and imprisonment.
5. SIGNATURES
Declared at [Declaration City] on [Declaration Date].
Declarant Signature: _________________________
Name: [Declarant Name]
Designation (if company): _________________________
AUTHORISED DEALER CERTIFICATION
Certified that the above declaration has been received and the supporting documents have been verified by the undersigned officer of [Authorised Dealer].
Officer Name: _________________________
Employee ID: _________________________
Branch Stamp: _________________________
Date: _________________________
Declarant
________________
Signature
Authorised Dealer Officer
________________
Signature
What Is a Foreign Exchange Declaration (Pakistan)?
A Foreign Exchange Declaration in Pakistan states the declarant's position on the matter it addresses and stands as a formal undertaking of its truth.
The Foreign Exchange Regulation Act 1947 is the foundational statute governing all dealings in foreign exchange in Pakistan. Enacted at Partition and inherited from the pre-independence regulatory framework, FERA 1947 vests broad powers in the State Bank of Pakistan (SBP) — established under the State Bank of Pakistan Act 1956 — to regulate, restrict, and prohibit dealings in foreign exchange. Section 4 of FERA 1947 prohibits any person from dealing in foreign exchange except through an authorised dealer or as otherwise permitted by the SBP. Section 8 of FERA 1947 prohibits the export of foreign exchange without the permission of the SBP, while Section 12 requires that all foreign exchange acquired by a resident be sold to an authorised dealer within a prescribed period.
The Foreign Exchange Declaration (Pakistan) is required in multiple contexts: when a traveller carries foreign currency exceeding USD 10,000 (or equivalent) across the border under SBP's Travel Rules; when a company receives foreign direct investment (FDI) and must report to the SBP under the Foreign Exchange Manual (FEM) 2002; when an exporter receives export proceeds and must repatriate them within the prescribed period; and when an individual receives an inward remittance through the Pakistan Remittance Initiative (PRI) channels administered jointly by the SBP, the Ministry of Overseas Pakistanis and Human Resource Development, and the commercial banking system.
The State Bank of Pakistan's Foreign Exchange Manual 2002 (FEM 2002) is the operational guide implementing FERA 1947, and it prescribes the specific forms, procedures, and timelines applicable to different categories of foreign exchange transactions. The FEM 2002 is periodically updated through SBP Circulars — the Exchange Policy Department (EPD) issues policy circulars that modify permissible limits, reporting requirements, and documentation standards for authorised dealers and their customers.
The Financial Monitoring Unit (FMU) of Pakistan — the country's Financial Intelligence Unit (FIU) established under the Anti-Money Laundering Act 2010 — works in conjunction with the SBP to confirm that foreign exchange declarations are cross-checked against suspicious transaction reports (STRs) filed under Section 7 of the Anti-Money Laundering Act 2010. Large or unusual foreign exchange transactions trigger enhanced due diligence requirements under the SBP's Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Regulations for Banks and Development Finance Institutions.
Pakistan's inclusion on the Financial Action Task Force (FATF) grey list from 2018 to 2022 resulted in significantly strengthened foreign exchange declaration and reporting requirements, with SBP and the National Counter Terrorism Authority (NACTA) jointly overseeing the country's compliance with FATF Recommendations 6 (targeted financial sanctions), 7 (proliferation financing), and 16 (wire transfer requirements). The Foreign Exchange Declaration (Pakistan) template available at forms-legal.com reflects these enhanced post-FATF requirements.
When Do You Need a Foreign Exchange Declaration (Pakistan)?
A Foreign Exchange Declaration in Pakistan is required across a wide range of personal, commercial, and regulatory situations involving foreign currency.
A Foreign Exchange Declaration is required when a Pakistani resident traveller is departing Pakistan carrying foreign currency cash exceeding USD 10,000 or equivalent in any other foreign currency. The SBP's travel regulations require declaration to Pakistan Customs at the port of departure — Karachi's Jinnah International Airport, Lahore's Allama Iqbal International Airport, or Islamabad International Airport — using the prescribed customs declaration form, with a copy retained by the traveller and the original submitted to the SBP-designated customs officer.
A Foreign Exchange Declaration is needed when a Pakistani company receives foreign direct investment (FDI) from a foreign investor. The investee company must file Form 1 of the SBP's FDI reporting framework within 30 days of receipt, accompanied by a foreign exchange declaration confirming the source, amount, and purpose of the inward remittance. Failure to report FDI within the prescribed timeframe attracts penalties under Section 23 of FERA 1947.
A Foreign Exchange Declaration is required when an exporter receives export proceeds. Under the SBP's Export Finance Scheme (EFS) and the general export repatriation rules, exporters must repatriate export proceeds within 180 days of the shipment date. The authorised dealer bank collects a foreign exchange declaration from the exporter confirming that the proceeds represent payment for bona fide exported goods or services.
A Foreign Exchange Declaration is needed when a Pakistani individual receives a large inward remittance — typically exceeding PKR 500,000 or equivalent — through formal banking channels, mobile money platforms (JazzCash, EasyPaisa), or Exchange Companies licensed by the SBP under the Exchange Companies Manual 2002. The authorised dealer requires a declaration of the source of the remittance for AML/CFT compliance.
A Foreign Exchange Declaration is required when a resident applies for a foreign exchange quota for import payments, overseas education, medical treatment abroad, or maintenance of a dependant outside Pakistan. The SBP's current account transactions rules permit various categories of foreign exchange outflows with prior declaration and documentary evidence.
A Foreign Exchange Declaration is needed when a listed company on the Pakistan Stock Exchange (PSX) receives dividends, royalties, or technical service fees from a foreign entity that require SBP approval under Section 5 of FERA 1947. The declaration must accompany the application to the SBP's Exchange Policy Department for remittance of funds abroad.
What to Include in Your Foreign Exchange Declaration (Pakistan)
A valid Foreign Exchange Declaration in Pakistan under the Foreign Exchange Regulation Act 1947 and the SBP Foreign Exchange Manual 2002 must contain the following essential elements.
Declarant Identification: Full legal name of the declarant exactly as on the NADRA Computerised National Identity Card (CNIC) — 13-digit format XXXXX-XXXXXXX-X — or NICOP for overseas Pakistanis, with the National Tax Number (NTN) issued by the Federal Board of Revenue (FBR) where the declarant is a business entity registered with the Securities and Exchange Commission of Pakistan (SECP) under the Companies Act 2017.
Nature of Transaction: Clear identification of the category of foreign exchange transaction — inward remittance, outward remittance, export proceeds receipt, FDI receipt, travel allowance, import payment, or other — as classified under the SBP Foreign Exchange Manual 2002 and the relevant SBP EPD Circular.
Currency Details: The specific foreign currency involved (USD, EUR, GBP, AED, SAR, CNY, or other), the amount in foreign currency figures and words, and the PKR equivalent at the applicable exchange rate on the date of the transaction as published by the SBP or the authorised dealer.
Source and Purpose Declaration: A sworn declaration of the source of the foreign exchange (employment income, export proceeds, investment return, inheritance, gift, loan, or other) and the purpose for which it is being received or remitted. This declaration must be consistent with the supporting documents — invoices, employment contracts, loan agreements, or other instruments — submitted to the authorised dealer.
Authorised Dealer Details: Name and SBP licence number of the authorised dealer bank or Exchange Company processing the transaction, the branch code, account number, and the SWIFT/BIC code for international transfers. Authorised dealers in Pakistan include all Schedule A banks licensed by the SBP and Exchange Companies holding a Class A, B, or C licence under the Exchange Companies Manual 2002.
Repatriation Commitment (for exports): Where the declaration relates to export proceeds, the exporter must confirm the shipment date, the E-Form number (export declaration filed with the Federal Board of Revenue and Pakistan Customs under the Customs Act 1969), and the commitment to repatriate the proceeds within 180 days or within any extended period granted by the SBP under exceptional circumstances.
AML/CFT Compliance Declaration: A statement confirming that the foreign exchange does not represent proceeds of money laundering, terrorism financing, or proliferation financing as defined under the Anti-Money Laundering Act 2010 and the Anti-Terrorism Act 1997. This declaration is required by all SBP-regulated entities under their AML/CFT Regulations and the FATF-aligned compliance framework.
Date and Signature: The declaration must be dated with the date of the transaction and signed by the declarant or, where the declarant is a company, by an authorised signatory whose specimen signature is registered with the authorised dealer bank. The authorised dealer must countersign to confirm that the documentary evidence has been verified.
Forms-legal.com provides this Foreign Exchange Declaration (Pakistan) template to assist individuals and businesses in meeting their compliance obligations under FERA 1947 and the SBP Foreign Exchange Manual 2002. Complex foreign exchange transactions — particularly those involving FDI, loan repayments, royalty remittances, or cross-border mergers — should be structured with the assistance of an SBP-approved authorised dealer and a legal advisor familiar with Pakistan's foreign exchange control framework.
Additional compliance elements for a Foreign Exchange Declaration (Pakistan) used in Pakistan include: Under the State Bank of Pakistan (SBP) Act 1956, the SBP regulates banking. The Securities and Exchange Commission of Pakistan (SECP) regulates capital markets under the Securities Act 2015. Section 4 of the Negotiable Instruments Act 1881 governs promissory notes. The Federal Board of Revenue (FBR) administers tax obligations under the Income Tax Ordinance 2001. The Sales Tax Act 1990 governs indirect taxation. Forms-legal.com provides this template as a starting point for Pakistan-compliant documentation.
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title = {Foreign Exchange Declaration (Pakistan) (Pakistan)},
year = {2026},
howpublished = {\url{https://forms-legal.com/pakistan/financial/forms/foreign-exchange-declaration-pakistan}},
note = {Free legal document template}
}Also available for these jurisdictions:
Frequently Asked Questions
The Foreign Exchange Regulation Act 1947 (FERA 1947) is Pakistan's primary statute governing all dealings in foreign exchange. Inherited from British India at Partition, FERA 1947 applies to all persons resident in Pakistan — individuals, companies, partnerships, and other entities — as well as to foreign nationals conducting foreign exchange transactions in or through Pakistan. The Act vests regulatory authority in the State Bank of Pakistan (SBP) under the State Bank of Pakistan Act 1956. Key prohibitions under FERA 1947 include: Section 4 (prohibition on dealings in foreign exchange except through authorised dealers), Section 8 (prohibition on export of foreign exchange without SBP permission), Section 12 (obligation to surrender foreign exchange to authorised dealers within prescribed periods), and Section 19 (prohibition on holding foreign exchange accounts outside Pakistan without SBP approval). The SBP's Exchange Policy Department administers FERA 1947 and issues EPD Circulars that modify permissible limits and procedures. Violations of FERA 1947 attract penalties under Section 23, including fines up to three times the value of the foreign exchange involved and imprisonment up to seven years for serious violations.
Pakistani residents travelling abroad may carry foreign currency without a specific SBP permit up to a limit of USD 10,000 (or equivalent in other currencies) per trip. Amounts exceeding USD 10,000 must be declared to Pakistan Customs at the point of departure using the Currency Declaration Form prescribed by the SBP. The foreign currency must have been purchased from an authorised dealer — a bank or Exchange Company licensed by the SBP — and the traveller must retain the purchase receipt as evidence of the lawful source of the currency. Carrying more than USD 10,000 without declaration constitutes a violation of FERA 1947 and the Customs Act 1969, and the excess foreign currency is liable to confiscation by Federal Board of Revenue (FBR) Customs officials. Within Pakistan, there is no restriction on physically moving foreign currency between cities, but Exchange Companies are required to report transactions above prescribed thresholds to the Financial Monitoring Unit (FMU) under the Anti-Money Laundering Act 2010.
In Pakistan's foreign exchange regulatory framework, authorised dealers and Exchange Companies are distinct categories of SBP-licensed entities. Authorised dealers are Schedule A scheduled banks — such as HBL, UBL, MCB, Allied Bank, Meezan Bank, and others — licensed by the SBP under Section 3 of FERA 1947 to conduct the full range of foreign exchange transactions, including trade finance, remittances, FDI, and foreign currency accounts. Exchange Companies are non-bank entities licensed by the SBP under the Exchange Companies Manual 2002 in three categories: Class A (full-service), Class B (limited operations), and Class C (franchise-based). Exchange Companies can buy and sell foreign currency notes and travellers' cheques and process inward and outward remittances within SBP-prescribed limits. Exchange Companies cannot open foreign currency accounts or handle trade finance transactions. For Foreign Exchange Declarations, authorised dealers can process and countersign all categories of declarations, while Exchange Companies can only process and countersign declarations for the specific transaction types within their SBP licence scope.
Under the SBP's export repatriation rules, Pakistani exporters are required to repatriate export proceeds within 180 days of the shipment date. Failure to repatriate within this period constitutes a violation of FERA 1947 and the SBP's export regulations. Consequences include: the SBP may restrict the exporter's access to the Export Finance Scheme (EFS) and Long-Term Finance Facility (LTFF) — concessional financing programmes for exporters; the authorised dealer bank must report the non-repatriation to the SBP's Exchange Policy Department using Form EE; the Federal Board of Revenue (FBR) may initiate tax proceedings on the unrepatriated proceeds; and the SBP may impose penalties under Section 23 of FERA 1947. Exporters who are unable to repatriate due to genuinely exceptional circumstances — such as a foreign buyer's insolvency, force majeure events, or international sanctions — may apply to the SBP's Exchange Policy Department for an extension, supported by documentary evidence. The E-Form system, maintained jointly by the FBR and the SBP, tracks all export declarations and flags non-repatriation cases automatically.
Overseas Pakistanis sending remittances to Pakistan through formal channels — banks, Exchange Companies, and Pakistan Remittance Initiative (PRI) partner channels — are generally not required to file a Foreign Exchange Declaration in the destination country. The PRI, jointly administered by the SBP, the Ministry of Overseas Pakistanis and Human Resource Development, and commercial banks, is designed to facilitate formal remittances with streamlined documentation. However, recipients of large remittances in Pakistan — typically exceeding PKR 500,000 per transaction or PKR 1,000,000 per month — may be asked by the receiving authorised dealer or mobile money platform to provide a source-of-funds declaration under the SBP's AML/CFT Regulations. For overseas Pakistanis holding the National Identity Card for Overseas Pakistanis (NICOP), remittances through PRI channels attract a rebate of 0.5% of the remitted amount under the SBP's incentive scheme. Overseas Pakistanis must comply with the foreign exchange laws of their country of residence — the UAE, Saudi Arabia, UK, USA, Canada, and Australia each have their own reporting requirements for outward remittances.
A Foreign Exchange Declaration for import payments in Pakistan must be accompanied by a specific set of documents that authorised dealer banks are required to verify under the SBP's Import Regulations and the Foreign Exchange Manual 2002. Required documents include: a valid Import General Manifest (IGM) or Bill of Lading / Airway Bill from the shipping carrier; a commercial invoice from the foreign supplier showing the currency, amount, and description of goods; a Customs Bill of Entry (Form I-GD) filed with Pakistan Customs through the WeBOC (Web Based One Customs) system administered by the Federal Board of Revenue (FBR); a Letter of Credit (L/C) or Contract Note where the import is financed through documentary credit; and, for goods exceeding USD 10,000, a Pre-Shipment Inspection (PSI) certificate where required by the Ministry of Commerce. Certain categories of imports — pharmaceutical raw materials, defence equipment, food items — require additional NOCs from the Drug Regulatory Authority of Pakistan (DRAP), the Ministry of Defence, or the Ministry of National Food Security and Research respectively. The authorised dealer bank reviews all documents against the M-Form (import declaration form) registered in the SBP system before processing the foreign exchange payment.
Foreign exchange violations in Pakistan are investigated and penalised under Section 23 of the Foreign Exchange Regulation Act 1947 (FERA 1947) and the Anti-Money Laundering Act 2010. Investigative jurisdiction is shared between multiple agencies: the State Bank of Pakistan's Exchange Policy Department conducts administrative investigations and can impose civil penalties; the Federal Investigation Agency (FIA) — specifically its Banking Crimes Circle — investigates criminal foreign exchange violations including hawala/hundi networks, money laundering through foreign exchange channels, and systematic under-invoicing of imports or over-invoicing of exports; and the Financial Monitoring Unit (FMU), Pakistan's Financial Intelligence Unit, analyses suspicious transaction reports (STRs) from authorised dealers and refers cases to the FIA or the National Accountability Bureau (NAB). Penalties under Section 23 of FERA 1947 include: confiscation of the foreign exchange involved; a fine not exceeding three times the value of the foreign exchange; and imprisonment up to seven years for the most serious violations. The SBP also has authority to revoke or suspend the licence of an authorised dealer found to be facilitating foreign exchange violations. Pakistan's post-FATF mutual evaluation framework requires courts to apply proportionate and dissuasive sanctions for AML/CFT violations linked to foreign exchange offences.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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