How to Transfer Money from Pakistan to Foreign Countries Legally ~ ODI

How to Transfer Money from Pakistan to Foreign Countries Legally

In the modern financial world, millions of Pakistanis need to transfer money abroad for family support, education, business, or medical reasons. Pakistan is a growing country in terms of freelancing, online work, and global trade, which makes legal international money transfer very important. Many people still use illegal ways like Hundi/Hawala which might seem cheap and fast, but such practices are illegal, unsafe, and risky. The State Bank of Pakistan (SBP) strictly monitors money transfers, and using legal channels is not only safe but also ensures that you are following international laws. This article explains in detail how to legally transfer money from Pakistan to foreign countries, what methods are available, and how you can stay secure while doing so.

1. Why Legal Money Transfer is Important

Legal money transfer is essential for both personal safety and financial stability. When you use authorized channels, you can track your money, prove the source, and stay protected against fraud. The government and SBP encourage people to send money abroad through licensed services because it keeps the economy strong and transparent. If you use illegal methods, there are several risks:

Your money can be lost with no recovery options.
You may face fines, legal cases, or even jail time.
Your bank accounts can be frozen.
Future visa or immigration applications may face rejection because of suspicious financial history.

Therefore, the safest and smartest choice is always to use legal remittance channels. It also helps Pakistan by recording the money flow officially, which increases foreign reserves and supports economic growth.

2. Legal Methods of Sending Money Abroad from Pakistan

There are several legal ways to send money abroad from Pakistan. Each method has its own process, fees, and time frame. Here are the most popular and reliable options:

a) Bank Wire Transfer

This is one of the oldest and most trusted ways of sending money overseas. All major Pakistani banks like HBL, UBL, Standard Chartered, Meezan Bank, and Allied Bank offer wire transfer services. The process usually requires the following details:

Recipient’s full name (as per bank records).
Recipient’s bank account number.
IBAN (International Bank Account Number).
SWIFT/BIC code of the foreign bank.

Although it may take 2 to 5 working days to complete, it is highly secure. Banks charge a transfer fee, and exchange rates apply, but you can rest assured that the money will reach safely and legally.

b) International Money Transfer Companies

Global money transfer companies like Western Union, MoneyGram, and Ria are widely used by Pakistanis. You can walk into an authorized branch, provide the recipient’s details, and send money abroad within minutes. The receiver can collect the money in cash or directly in their bank account. These services are useful for urgent transfers because of their speed and international presence. The charges are usually higher compared to banks, but the convenience is unmatched.

c) Online Payment Gateways

For freelancers, entrepreneurs, and businesses, online payment gateways are the most convenient solution. Some popular options include:

Payoneer – Very popular among freelancers. Payments from international clients are loaded into Payoneer and can be withdrawn into Pakistani bank accounts.
Wise (formerly TransferWise) – Known for transparent fees and real market exchange rates. You can link your bank account and send money directly to foreign accounts.
PayPal – Although not directly available in Pakistan, many Pakistanis use PayPal accounts abroad and then connect with local banks through Payoneer or Wise.

These platforms are SBP-compliant and trusted by millions worldwide.

d) Authorized Exchange Companies

In Pakistan, several exchange companies are officially licensed by the State Bank of Pakistan to carry out foreign currency transactions. Examples include Wall Street Exchange, UAE Exchange, and Paragon Exchange. These companies provide quick services and sometimes better exchange rates than banks. Always ensure the company is SBP-approved before sending money.

3. Step-by-Step Process to Transfer Money Abroad

If you are sending money abroad for the first time, the process might feel confusing. Here’s a simple step-by-step guide:

Choose the right method – Decide whether you want to use a bank, money transfer company, or online gateway depending on your needs.
Collect recipient details – Bank account number, IBAN, SWIFT code, or ID (for cash pickup services).
Visit the service provider – Go to the bank branch, exchange company, or use an app/website.
Provide verification documents – CNIC, passport copy, and proof of relationship or purpose (for large transfers).
Deposit money – Pay in Pakistani rupees, which will be converted to the recipient’s currency.
Receive transaction receipt – Keep the receipt, tracking number, or reference code.
Confirm delivery – The recipient confirms the transfer when money arrives.

4. SBP Rules and Transfer Limits

The State Bank of Pakistan has placed certain limits to control outward remittances. These depend on the purpose of transfer:

For education – Universities abroad require tuition fees, which can be transferred with admission documents.
For medical expenses – You must show medical reports and hospital documents.
For family maintenance – You can send money regularly with proof of relationship.
For international services or subscriptions – Payments can be made but within defined limits.

There is usually an annual cap, and for larger amounts, you may need special approval. Always confirm with your bank to avoid delays.

5. Tips for Safe and Secure International Transfers

Always use SBP-approved channels only.
Never send money through Hundi or illegal brokers.
Compare exchange rates before sending to save money.
Keep your receipts safe for proof of transfer.
For business transfers, maintain proper invoices and agreements.

These tips will help you avoid scams and ensure your money reaches safely.

6. Common Reasons People Transfer Money Abroad

Pakistani citizens commonly transfer money abroad for:

Tuition fees for students studying overseas.
Medical treatment of family members abroad.
Supporting children or family living overseas.
Paying for freelancing services and online businesses.
International travel expenses.
Investments in legal businesses abroad.

7. Frequently Asked Questions (FAQs)

Q1: Can I use Hundi or informal channels to send money?

No, it is illegal and risky. Always use legal banks or licensed exchange companies.

Q2: What documents are required for sending money abroad?

You usually need CNIC, bank account details, and proof of purpose (like fee invoice or medical bill for large transfers).

Q3: Which method is cheapest for sending money abroad?

Wise and Payoneer are considered cost-effective with real exchange rates. Banks are safer but may charge higher fees.

Q4: How much money can I send abroad every year?

There are limits defined by SBP. For family support, the limit is usually up to USD 10,000 annually, but it depends on the purpose.

Q5: How long does a money transfer take?

Bank transfers may take 2–5 working days. Western Union and MoneyGram are almost instant. Online transfers like Payoneer usually take 24–48 hours.

Conclusion

Sending money abroad from Pakistan is easy, but it must always be done through legal and SBP-approved channels. Whether you choose banks, money transfer companies, online gateways, or exchange services, the key is to stay safe, secure, and transparent. Avoid illegal methods at all costs, because they can cause financial loss and legal troubles. By using legal methods, you protect your money, support Pakistan’s economy, and maintain a clean financial record for the future.

How to Transfer Money from Pakistan to Foreign Countries Legally