The government is planning to amend the Foreign Exchange Regulations Act (FERA) 1947 to prevent illegal foreign exchange transactions.
Ministry of Finance has proposed to amend FERA 1947 by introducing a bill “FER (Amendment) Act 2019”, in the National Assembly.
The move is aimed at empowering the State Bank of Pakistan (SBP) to regulate foreign exchange regime in the country more effectively, a press release said.
The proposed amendment has been approved by the Federal Cabinet and transmitted to the Parliament for enactment, said the Finance Ministry.
This measure is part of the government’s efforts to enhance the transparency of financial transactions. The move is also part of the government’s efforts to comply with the Financial Action Task Force’s (FATF) requirements to regulate the domestic movement of foreign exchange.
The amendments would substantially strengthen the SBP’s powers to issue necessary regulations/instructions relating to inland movement of foreign currency and enable it to monitor such movement.