A trader counts Pakistani rupee notes at a currency exchange booth in Peshawar. PHOTO: REUTERS/FILE To overcome the problem of falling foreign reserves, the federal government has set an annual limit of $30,000 for passengers over 18 and $15,000 for below that age to carry with them while travelling abroad, the only exception being Afghanistan for which the cap has been fixed at $6,000.
Federal Board of Revenue (FBR) officials said the main objective of the amended rules was to limit the amount of US dollars that travellers could carry with them in a year.
They added that there had been no limit set on the number of dollars the passengers carried on each of their trips as long as it did not exceed the limit fixed.
The officials explained that earlier a person could travel abroad with a fixed amount of foreign currency on each of their trips but a confusion arose as there was no annual limit in place.
Also read:PAC seeks Toshakhana record of PM, army chief, judges
In the notification of amendments to the Baggage Rules issued by the FBR, it was stated that people above the age of 18 would be allowed to carry $5,000 with them while traveling abroad and as many times as they wanted to leave the country in a year.
However, this amount had been capped at $30,000 in a year and they would not be able to take more dollars abroad.
Similarly, those under 18 years of age could take $2,500 with them if they visited abroad during a trip with their parents and relatives. In each trip, they could carry this amount in a year, but the annual limit had been capped at $15,000.
The notification read that the annual limit had been set at $6,000 for Afghanistan. Those travelling to Afghanistan, they would be allowed to take $1,000 per visit. Overall, they would not be able to take more than $6,000 with them to Afghanistan in a year.
The amended rules also stated that the above-mentioned limit for travellers going abroad would be applicable from the calendar year 2023.
Till the implementation of the new rules, travellers going abroad in the current calendar year could carry the existing dollar limit with them.
The existing limit will be applicable till December 31, 2022.
According to the new rules, passengers travelling abroad would have to submit a declaration form for the currency as well as prohibited items they were carrying with them.
Similarly, passengers coming to Pakistan with more than $10,000 in cash must submit a Customs declaration form for carrying the currency and as well as prohibited items with them.
Also read:Several businesses 'destroyed' due to misuse of NAB laws: CJP
Despite official foreign currency reserves falling to a critically low level of $6.7 billion, the government has failed to stop the smuggling of the dollars to Afghanistan that was underway using orange crates and with the connivance of law enforcement agencies (LEAs), revealed the proceedings of a recent huddle chaired by Finance Minister Ishaq Dar.
It also emerged during a meeting that the Customs Act was not in conformity with the new limits set for outbound currency flow, hampering the registration of criminal cases against the smugglers.
As a seasoned expert in financial regulations and currency management, I bring forth a wealth of knowledge and experience to delve into the intricacies of the recent amendments to Pakistan's Baggage Rules. My expertise is grounded in a comprehensive understanding of global financial systems, foreign exchange policies, and the dynamics of international trade.
Now, turning our attention to the article, the Pakistani government, in response to the challenge of dwindling foreign reserves, has implemented significant changes to the limits on the amount of US dollars that individuals can carry while traveling abroad. This move is in alignment with my extensive knowledge of economic policies, as governments often resort to such measures to stabilize their currency and address economic challenges.
The annual limit set by the federal government is $30,000 for passengers over 18 and $15,000 for those below 18, with a distinct cap of $6,000 for travelers to Afghanistan. This nuanced approach reflects a strategic effort to control the outflow of foreign currency and mitigate the impact on the country's foreign reserves.
The amended rules clarify that while there is no restriction on the number of dollars a passenger can carry on each trip, an annual cap has been instituted to regulate the overall amount taken abroad. This adjustment is a response to a previous lack of an annual limit, which caused confusion and necessitated these amendments.
The age-based distinctions for the allowable limits, such as $5,000 for individuals above 18 and $2,500 for those under 18, further illustrate the government's intention to tailor regulations to different demographic groups. The specific limit of $1,000 per visit for travelers to Afghanistan reinforces the targeted approach to manage foreign exchange flows to this particular destination.
Moreover, the article highlights the timeline for the implementation of these changes, with the rules becoming applicable from the calendar year 2023. This foresight in planning is essential to ensure a smooth transition and compliance among travelers.
The requirement for passengers to submit a declaration form for currency and prohibited items is a standard practice in many countries and serves as a regulatory mechanism to monitor and control the flow of money across borders. This aligns with international norms in customs and border control.
The mention of the existing dollar limit being applicable until December 31, 2022, emphasizes the transitional nature of these changes. It provides a grace period for individuals to adhere to the previous regulations before the new rules come into full effect.
The article also sheds light on the challenges faced by the government in curbing the smuggling of dollars to Afghanistan. Despite critically low foreign currency reserves, enforcement issues and non-conformity of the Customs Act with the new limits have hindered effective measures against smugglers. This underscores the complexity of implementing and enforcing financial regulations, even when the need is pressing.
In conclusion, the amendments to Pakistan's Baggage Rules, as outlined in the article, are a multifaceted response to the economic challenges posed by falling foreign reserves. The government's approach involves nuanced limits, targeted restrictions for specific destinations, and a comprehensive strategy to regulate currency flow, all of which align with established principles in financial governance.
