Amendment in Instructions Related to Inward Home Remittances

EPD Circular Letter No. 08 — April 10, 2026

The Chief Executives,
All Exchange Companies

Dear Sir/Madam,

Amendment in Instructions Related to Inward Home Remittances

       Attention of Exchange Companies (ECs) is invited towards the instructions contained in Para 7, Chapter 7 of Regulatory Framework for Exchange Companies (RFEC).  

2. In order to facilitate Exchange Companies in mobilizing additional home remittances, it has been decided that they may enter into forward sale transactions with the Authorized Dealers against receipt of home remittances for a period up to 5 working days. Accordingly, sub-para 7 I(d) has been amended and a new sub-para 7 II has been introduced in Chapter 7 of ibid while the remaining sub-paras stand renumbered. The revised Para 7 of Chapter 7 is attached as appendix-A.

3.    ECs are advised to bring the above instructions in the knowledge of all concerned for compliance.
   

Enclosed:

• Appendix-A
• Annexure-N

Yours sincerely,

Dr. Asif Ali
Director

Appendix-A
Para 7, Chapter 7 stands amended as under:
I. General
a) ………… b) ………… c) ………… d) The Company will surrender 100% of FCY, received on account of inward home remittances, in equivalent US Dollars, in the interbank market, regardless of the forward sale facility availed.
II. Forward Sale of Inward Home Remittances to Authorized Dealer
The Company may enter into forward sale transactions against the receipt of inward home remittances with the Authorized Dealers subject to the following terms and conditions:
a) Forward sale facility may be availed for a maximum period of five working days. b) In case the forward sale transaction is for less than five working days, forward sale contract period may be extended provided that the total period of the contract, including the extended period, does not exceed five working days. c) Forward sale may be booked based on the anticipated inflow of home remittances scheduled till the settlement date. For this, the Company will submit a copy of previous fifteen days’ advices (swift copy) from MTOs, and the tentative frequency of FCY receipts from MTOs to the Authorized Dealer. The daily average of inward remittances received over the preceding fifteen days will serve as the per day benchmark for determining the amount of forward sale contract. d) In case of short realization, settlement of booked forward transaction may be carried out with other FCY funds available with the Company. However, in no circumstances should this replenishment exceed 10% of the deal amount of forward transaction. e) Forward contracts, which are not taken up, will be closed out on the date of maturity at prevailing spot rate in accordance with the terms and conditions as agreed between the Company and the Authorized Dealer. f) The forward contract must be squared on the maturity date.

g) Any misuse of this facility, including but not limited to acts such as market manipulation by way of repeated closing out of deals due to excessive forward selling, shall attract strict penal and enforcement action by SBP under relevant provisions of laws, rules and regulations. h) The Company will report the details of forward sale contracts substituted / closed-out / cancelled against Home Remittances as per Annexure-N. i) All other terms and conditions regarding disbursement of home remittances to the beneficiaries remain the same.
III. Due Diligence Requirement for Engagement with Foreign MTOs
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IV. Disbursement of Home Remittance as Sub-Agent
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Annexure – N
Details of Forward Sale Transactions against Home Remittances for the Month of ------------------1 Name of Company: __________________________ Sr. No. Name of AD Forward Contract Ref No. Currency Amount (USD Eqv) Booking Date Dates of Receipt of Remittances Settlement / Maturity Date Rate Agreed Amount Replenished In case of Short Realization (If any) Close-out/ Cancelled Date (If any) Remarks/ Reason 1 2 3 4 5 6 7 8 9 10 11 12 1 2 … 1 to be submitted to the Banking Supervision Department-1, SBP, within 2 working days of end of each month, through email: ec.epd@sbp.org.pk