Regulatory Alerts2026-01-22 | EPD Circular Letter No. 03Payment to Non-Resident Directors, Chairmen, Shariah Advisors, and Shariah Scholars of SBP Regulated Entities
Authorized Dealers are permitted to remit remuneration to non-resident directors, chairmen, and Shariah personnel of SBP-regulated entities in accordance with board-approved policies. Banks must perform thorough due diligence to verify compliance with SBP remuneration instructions before processing any payments. Required documentation for these remittances includes valid SBP appointment approvals, board resolutions specifying entitlements in Pak Rupees, attendance confirmation, travel proofs, Form 'M', and tax deduction records.
Annexure-A
Para 28C - Payment to Non-Resident Directors/Chairmen/Shariah Advisors/Shariah Scholars of SBP’s Regulated Entities on Account of Remuneration, Meeting Fee, etc.
(i) Authorized Dealers are permitted to effect payments on account of remuneration to Non-Resident Directors/Chairmen/Shariah Advisors/Shariah Scholars of the SBP’s regulated entities. (i) Authorized Dealers are permitted to effect payments on account of remuneration to Non-Resident Directors/Chairmen/Shariah Advisors/Shariah Scholars of the SBP’s regulated entities.
Remuneration may include meeting fees, travelling allowances and daily allowances (TA&DA), retainer etc. as per the remuneration policy approved by the Board of the regulated entity. Remuneration may include meeting fees, travelling allowances and daily allowances (TA&DA), retainer etc. as per the remuneration policy approved by the Board of the regulated entity.
(ii) Before effecting such remittances, the Authorized Dealers shall conduct necessary due diligence to ensure compliance with SBP’s instructions on remuneration related to Board Member/ Shariah Advisor or Shariah Scholar, and keep on record the following documents/ information: (ii) Before effecting such remittances, the Authorized Dealers shall conduct necessary due diligence to ensure compliance with SBP’s instructions on remuneration related to Board Member/ Shariah Advisor or Shariah Scholar, and keep on record the following documents/ information:
a) Copy of SBP’s valid approval for appointment/FPT clearance as a Director/Chairman/Member of the Board including Shariah Board. a) Copy of SBP’s valid approval for appointment/FPT clearance as a Director/Chairman/Member of the Board including Shariah Board.
b) Copy of Board approved Remuneration Policy or Board resolution specifying the entitlement, denominated in Pak Rupees. b) Copy of Board approved Remuneration Policy or Board resolution specifying the entitlement, denominated in Pak Rupees.
c) Confirmation of attendance in the meeting(s) for which the payment is being made, where applicable. c) Confirmation of attendance in the meeting(s) for which the payment is being made, where applicable.
d) Supporting travel documents for TA/DA claims. d) Supporting travel documents for TA/DA claims.
e) Duly filled-in and signed Form ‘M’. e) Duly filled-in and signed Form ‘M’.
f) Proof of deduction of all applicable taxes. f) Proof of deduction of all applicable taxes.
g) Any other document deemed necessary by the Authorized Dealer. g) Any other document deemed necessary by the Authorized Dealer.