SBP issues restrictions on foreign travel for Pakistani banks' officials

KARACHI: The State Bank of Pakistan in a letter issued here on Friday banned foreign visits of banks’ officials in groups for an indefinite period over concerns related to the rationale behind such travels.

The Bank, in its circular, stated that bank employees’ overseas travel in teams – in partnership with certain “third parties” – seems to be suspicious, and explained that it is causing an unnecessary foreign exchange outflow.

Shedding further light on the issue, the central bank said the reasons for these international tours were carried out for “management meetings [and] reward for achieving sales/business targets.”

Nevertheless, SBP specified that foreign visits of individual employees, if conducted “for advanced trainings, technology acquisition and occasional Board of Directors’ meetings or to manage their overseas networks,” are permissible if they are in accordance with the current policies.

However, the Bank requires all banks operating in the Pakistani market to formulate and submit a Foreign Travel Policy by June 13, 2017.