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!
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.
The following individuals, companies, and organisations are eligible to open a foreign currency account in Pakistan.
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.
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.
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.
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:
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.
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.
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.
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.
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.
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.
Several banks in Pakistan provide foreign currency account services, including but not limited to:
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.