A foreign currency account in Pakistan is a bank account that holds different foreign currencies. The currency of Pakistan is the Pakistani rupee (PKR), but it is also common to hold US dollars, Euros, Pound Sterling, etc., in bank accounts for businesses and individuals.
These accounts enable account holders to deposit, withdraw, and transfer foreign currencies like a regular bank account. However, the account balance and transactions are maintained in a particular currency, e.g., US dollars, rather than the local currency, Pakistani Rupees (PKR).
But how to open a foreign currency account in Pakistan? What are the advantages of opening this account? What are the eligibility criteria? If any of these questions hit your skull, be with us in this guide, as we’ll resolve all your queries. Read on to learn the things you should!
How Does Foreign Currency Account Work?
A foreign currency account permits you to save and use foreign currencies. This can be useful for people who travel frequently, do business internationally, or simply want to protect their savings from currency fluctuations.
Once your account is ready to use, you can retain money in any of the currencies that you have chosen. You can also withdraw, transfer money between currencies, and pay bills in different currencies.
When you withdraw or transfer, the bank will use the current exchange rate to convert your funds into the currency you want. The amount of money you receive in the other currency may differ from the amount you deposited.
Who Is Eligible for Foreign Currency Account?
The following individuals, companies, and organisations are eligible to open a foreign currency account in Pakistan.
- Pakistan Nationals (residents and non-residents, including dual nationals)
- Foreign Nationals (residing in Pakistan or abroad)
- Joint Accounts (residents and non-residents)
- Diplomatic Missions and Officers
- International Organizations
- Firms and Companies (with foreign shareholdings)
- Charitable Trusts and Foundations (income tax exempt)
- Branches of Foreign Firms in Pakistan
- Non-Resident Exchange Companies
- Foreign Firms/Corporations (non-bank, eligible owners)
Who Is Not Eligible to Open a Foreign Currency Account?
While many are eligible for foreign currency bank account in Pakistan, a few aren’t. Those include airlines, shipping companies collecting passage/freight in Pakistan, leasing companies, investment banks, and Modaraba companies with certain licences are not eligible.
How to Open Dollar Account in Pakistan?
The process to open a foreign currency account in Pakistan might vary depending on which bank you choose, whether you’re an individual, company, or organisation, a Pakistani nationality holder or non-resident, and more.
However, if you come under the eligibility criteria, this is the typical process to open a foreign currency account in Pakistan.
Choose a bank
Many banks in Pakistan offer various types of best foreign currency accounts in Pakistan. Do some research to find a bank with the benefits and features you want. For more information, you can see the list of our recommended banks for this purpose.
Gather the required documents
The necessary documents may differ from bank to bank, person to person, and your source of income. However, if you’re a Pakistani citizen, some of the common documents that you may need are:
- Your passport or national ID card
- A recent photograph
- A proof of address, such as a utility bill
- An introduction letter from your employer (if you are a salaried employee) or other proof that shows your source of income
Visit the bank
Once you have chosen a bank and gathered the required documents, you can visit the bank to open your account. The bank will request that you finish an application form and provide the necessary documents.
Make a deposit
The bank will require you to make a minimum deposit to open the account, typically 500 USD, 400 EURO, 2,000 AED, 300 GBP, and 2,000 SAR. The amount of the minimum deposit may vary from bank to bank.
Wait for the account to be approved
The bank will examine your documents and application. If your application is approved, you will be issued a chequebook (maybe a debit card as well) for your foreign account.
Which Bank Is Best for Foreign Currency Account in Pakistan?
The best bank for a foreign currency account in Pakistan depends on your individual needs, circumstances, and the benefits they provide. However, these are some of the examples of the most reputed names.
- Habib Bank Limited (HBL): Competitive interest rate, no minimum balance.
- United Bank Limited (UBL): High-interest rate, low minimum balance.
- National Bank of Pakistan (NBP): Versatile features and benefits.
- Bank Alfalah: High-interest rate, no minimum balance, ATM access, international transfers.
- Standard Chartered Bank: Variety of features, small fee.
- Meezan Bank: Competitive interest rate, no minimum balance, Shariah-compliant.
What Are Benefits of Foreign Currency Accounts in Pakistan?
There are a wide range of benefits of a dollar account and other currencies in Pakistan. The following are a few of the most important ones.
- Stable Currency: Opting for a Dollar account means relying on the steady value of the US dollar, reducing concerns about rupee instability and inflation.
- Effortless Global Transactions: With a Dollar account, international payments become straightforward – move money from your account to recipients abroad without hassle.
- Earning Potential: Some banks offer interest on Dollar accounts, allowing your savings to grow over time, often at higher rates compared to rupee accounts.
- Currency Safeguard: Shield your savings from the effects of rupee depreciation – the value of your Dollar account remains consistent even if the rupee weakens.
- Foreign Interest Rates: Consider foreign banks for potentially better Dollar interest rates if you’re comfortable with international banking options.
FAQs
Can I open a bank account in a foreign currency?
Yes, many banks in Pakistan offer foreign currency accounts where you can hold and manage funds in currencies other than the Pakistani rupee, such as US dollars (USD), euros (EUR), etc. These accounts are suited for international transactions, savings in stable currencies, and more.
Which banks offer foreign currency accounts?
Several banks in Pakistan provide foreign currency account services, including but not limited to:
- Habib Bank Limited (HBL)
- United Bank Limited (UBL)
- National Bank of Pakistan (NBP)
- Bank Alfalah
- Standard Chartered Bank
- Meezan Bank
How do I deposit foreign currency?
To deposit foreign currency, you might need to visit your local bank branch. You’ll likely have to exchange your foreign currency at the bank and deposit the converted amount into your account, whether a checking, savings, or money market account.
