Islamabad, Feb 19: The Ministry of Finance has introduced significant revisions to the Federal Treasury Rules, altering the process for handling remittances by banks. These amendments, issued under Section 42 of the Public Finance Management Act, 2019, were officially notified on Wednesday.
As per the updated regulations, banks must now adhere to the procedures outlined in Rules 684 to 703 or follow any directives provided by the State Bank of Pakistan (SBP) regarding remittances between SBP, its subsidiaries, and the broader banking sector. This marks a shift from the previous system, where treasury officers were responsible for overseeing the transportation and security of remittances unless alternative arrangements were made with the designated Agent.
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Furthermore, the new framework eliminates the authority of Collectors to approve additional Potdars, as specified in sub-rule (4) of Rule 700. This adjustment means that bank treasuries will no longer require Collector approval for appointing extra personnel for remittance-related tasks.
These regulatory changes are expected to enhance efficiency, improve security, and streamline the remittance process within the banking sector. By aligning with SBP’s directives, the new approach ensures consistency and modernizes financial management practices in Pakistan.
