How to Send Money Abroad for University Fees From Pakistan

How to send money abroad for university fees from Pakistan depends on the specifics of your case, such as the amount, the country where you need to make the payment, the payment methods accepted by the university, the foreign exchange services provided by your bank, and other factors. Pakistani students can get foreign exchange for educational purposes from local banks. In addition, students may be able to use approved online payment services to make university payments.

Of these various factors, ensure that you use the payment method that is acceptable to the university and aligns with the foreign exchange regulations of Pakistan. Other mistakes can lead to loss of valuable time when you may have only a limited time to pay the university.

If you have not yet decided which university you will attend, and if you are in the process of completing your university application and student visa application, we can help you with all these and assist you in planning your finances.

SBP Rules for Sending Money Abroad for Education: What You Need to Know

Banks in Pakistan can send a maximum of US$ 70,000 to students per academic year to pay for higher education at universities recognized by the relevant country and their related expenses. The university application and processing fees, tuition, and other expenses related to education and living are considered under this limit.

What The New Rule Means

The new regulation sets an annual limit on the amount of foreign exchange remitted for educational purposes to the equivalent of US$70,000 per student per year. The rules permit remittance of educational processing and related charges, tuition fees, and other expenses associated with the student’s education.

The Foreign Exchange Manual of SBP directs that tuition fees and other university charges should be remitted to the educational institution. Living and miscellaneous expenses may be remitted to the student.

In this regard, it is necessary to point out that tuition fees remitted to a student for the purpose of onward transmission to the university are a completely distinct transaction from the university fees remittance to the educational institution.

As per the Framework of SBP, an additional cash foreign exchange allowance, to the extent of US$5,000, is permissible for initial expenses relating to the student’s board and lodging and other related expenses. This allowance is also endorsed on the student’s passport.

How much money can I send abroad from Pakistan?

The SBP education-remittance framework enables authorised dealers to facilitate the transfer of about USD 70,000 per student per year for higher education expenditures. These expenses may be pursued through an authorized dealer.

Expenses covered under this framework include, but are not limited to, tuition fees, tests and applications for admission, processing fees, and dues to foreign institutions. Living expenses may also be remitted to the student if supported by the foreign institution. An initial cash allowance of up to USD 5,000 may also be transferred to the student.

As per SBP, a student is free to apply to as many institutions as he/she wishes. Remittances for such applications are permitted within the framework. Each application, however, must be supported by the necessary documents.

Students and their parents should note that the limit of USD 70,000 is for a student for a given calendar year and is not for a parent/guardian, a bank account or for a particular university.

Documents Required to Remit Tuition Fee Abroad

The documents needed to remit tuition include the duly filled-out application form, ID documents, ID passport, admission evidence and breakdown of costs charged by the university. Your bank may require additional documents; thus, you should check with the bank prior to visiting the branch.

The following are the essential documents as stipulated by the SBP:

• Application Form: Evidence of the request to remit education expenses.

• Student’s CNIC/Form ‘B’:Establishes of the student’s identity

• Parent/Guardian’s CNIC: Records the education-remittance request

• Student’s Passport: Evidence of the student’s travel and study in the foreign country

• Admission Letter: Establishes acceptance by the foreign institution

• University Cost Sheet/Fee Breakdown: Shows exactly what amount is being requested and why

The number of the application form deserves special mention. The SBP circular refers to Appendix V-78 of the Foreign Exchange Manual, while the Foreign Exchange Manual, which is on the SBP website, refers to Appendix V-82 of the Manual.

Instead of relying on an old blog post for the application form, you should obtain the latest application form from your bank when initiating the education expense remittance process.

If you are utilizing an education consultant, they will help you finalize some documents, like admission letters, before you make your payment. Glommi.co provides admission and financial document assistance as part of their student visa service.

Where Does the Money Actually Have to Go?

Payment to the university is considered complete when the funds are credited to the university’s account. Payment can be made through SWIFT/Telegraphic Transfer or Demand Draft.

SBP has mentioned the above ways as the only allowable methods for payment to the university. The university’s payment instructions are very important because they contain details regarding the account number, name of the bank and other pertinent information. There are things you should check before you effect a wire transfer:

• Beneficiary Name

• Bank Name

• Account Number

• SWIFT/BIC

• Reference Number

• Amount

• Currency

Living expenses (as defined by the university) can be sent to the student as per the SBP Foreign Exchange Manual. Miscellaneous expenses should be sent to the university as per the university's instructions.

Bank Transfer vs Exchange Company for University Fees in Pakistan

A bank transfer is the most common way to send documented tuition payments to universities. Exchange companies authorized to provide Foreign Telegraphic Transfer (FTT) services offer services similar to bank transfers. The means available to effect a university tuition payment vary and are determined by the university, the country, and the mode of payment.

Payment services report that international bank transfers may take 1 to 5 days, although this may be longer if the receiving bank is located in a country that has strict control over outgoing payments.

FTT services by exchange companies are useful when transferring money through them for your study-related financial transactions. However, the fees quoted on their websites change from time to time. The fees displayed on a website may not be the same on the day you are making the transaction. You should ask them to quote the total amount they will charge in Pak Rupees and the amount the university will receive.

Some universities allow students to use payment services other than the ones authorized by the university. Flywire and Wise are two services that allow cross-border money transfers. You can use these services to make education-related payments to a university if these services are allowed by the university, meet the university’s payment deadlines, and charge lower fees than other services.

When making education-related money transfers from Pakistan, the most important consideration is which service helps you transfer the exact required amount to the university account of your choice, in a timely manner.

Which Is the Cheapest Way to Send Money Abroad for Tuition From Pakistan?

The cheapest way to transfer university tuition from Pakistan varies from case to case. This is because the total cost of a money transfer includes not only the transfer fee, but also the exchange rate mark-up.

For a large tuition payment, even a small exchange-rate difference can matter considerably. Ask every provider for:

• The PKR amount you must pay

• The foreign-currency amount the university will receive

• The transfer fee charged by the provider

• Fees charged by any intermediary banks

• Anticipated time of delivery

• Whether the full amount invoiced will be received by the university

Considering just the transfer fee often provides an incomplete and misleading picture.

How to Send Money Abroad for University Fees From Pakistan: Step-by-Step

The most convenient way to explain how to transfer money to pay university fees from Pakistan is to work out backwards from the university’s payment deadline and ensure that all the required paperwork is in order to facilitate the money transfer.

1. Verify the Exact Amount

You need to determine the precise amount from the latest invoice/fee statement/ cost statement. The amount may cover tuition, accommodation, insurance, deposits, and/or other charges.

2. Verify Payment Details of Beneficiary

Check the name of the account/IBAN, currency, SWIFT/BIC, and student ID, if any. Make sure you use the university’s payment portal, if available, to make the payment, rather than instructing a bank to wire the money.

3. Select a Money Transfer Option

Traditionally, you need to use an Authorized Dealer bank to wire the money. Compare the fees, expected transfer time, and exchange rate with other options authorized by the university.

4. Collect Documents

You will be required to provide your CNIC/Form ‘B’ and/or the CNIC of your parent(s)/legal guardian(s), Passport, Admission Letter, Cost Statement, and the bank’s Transaction Slip.

5. Transfer Money

Bank staff will explain the procedure, verify your supporting documents, and complete the International Money Transfer.

6. Save your payment documentation

Bank receipts, SWIFT transmissions, reference numbers and any payment confirmations issued by the University or the payment processing agent must be retained.

7. Confirmation of Payment

Just because you see a transaction debit on your account in Pakistan does not necessarily mean the University has credited your student account. You must contact the University for confirmation after the expected time for the processing of the payment.

If you are in the process of applying to universities and preparing for the student visa all at the same time, it is best to get the services of a professional international student placement and support service. Glommi.co has services covering all these needs for students in Pakistan.

Common Mistakes That Delay or Block a University Fee Transfer

Some of the main reasons for the delay or refusal to process University fee payments are last-minute payments, incorrect beneficiary information, and differences in invoicing documents. Using an old version of the University application form is also common. The Appendix References in the publications of the State Bank of Pakistan (SBP) are always subject to change. It is advisable to obtain the latest references from your Authorized Dealer.

Bank Transfer vs Exchange Company for University Fees in Pakistan

• Bank SWIFT/ Telegraphic Transfer: Requires documentation and may involve Charges

• Exchange Company: FTT transfers, limits, and purpose may vary

• University Payment Gateway: May require payment through this method

• Money Transfer App: Only transfers supported by the university

• Education Payment Gateway University: May require this method of Payment

2. Payment Instructions

“Living” or “miscellaneous” expenses are not considered as tuition fees by the SBP. Therefore, sending living expenses to a student along with tuition may result in refusal of the payment.

There may be delays if SWIFT details provided by the sender are incorrect. Supporting Bank may need to perform an investigation before crediting the account.

Consider a transfer due by Friday. If you initiate the transfer on Thursday, you may not have time to resolve a query regarding compliance or a discrepancy in payment.

Is Tax Imposed on Payments Made for Studying Abroad?

The rules of the FBR are more helpful than unspecific articles regarding “foreign remittance tax” for questions pertaining to the tax status of payments made for studies abroad.

The recent pronouncements of the FBR demonstrate that the legal framework of Pakistan has incorporated provisions pertaining to taxes on remittances and payments. The Income Tax Ordinance of Pakistan has likewise incorporated provisions pertaining to taxes on educational and medical remittances.

The budget speech of the FBR for the year 2026-27 demonstrates that amendments would be made to the advance tax rules pertaining to foreign remittances. The speech exemplifies that articles pertaining to taxation of remittances lose their relevance over time.

It is prudent to assume that the tax rate quoted in a blog posted several years ago would not be the rate applicable to a given university payment.

It is advisable to contact the bank for a tax assessment regarding the payment to be effected. For larger and/or atypical payments, it may be prudent to seek the services of a tax practitioner.

Conclusion

While transferring tuition is just one part of preparing to study abroad, it is typically time-sensitive. Along with other time-sensitive documents like your visa, admission, and evidence of sufficient funds, you may also need to arrange health and insurance documents, and other legal and supporting documents for your study plan.

Glommico offers a range of services to assist prospective students in Pakistan with the process of studying abroad. These services include assistance with choosing and applying to universities, preparing the necessary documents and applications for visas, and organizing their trips abroad. The company has offices in countries including the United Kingdom, the United States, Canada, Australia, and New Zealand, among others.

If you have already been offered a place at a university, Glommi.co can help you to prepare the remaining documents required for your student visa and organize the entire process to give you peace of mind. To receive assistance in preparing for all aspects of your student abroad journey, from choosing a university to obtaining your student visa, contact Glommico.

Glommico provides comprehensive study-abroad services to students in Pakistan. The company can also assist students in obtaining a student visa by using the SBP framework, which permits education-related money transfers of up to US$70,000 per student per year.