Travel Policy Template for Pakistan

A Travel Policy sets the rules and guidelines for business travel within an organization, covering everything from booking flights and hotels to expense reimbursements. In Pakistan, these policies must align with local labor laws and tax regulations, especially regarding per diem allowances and documentation requirements from the Federal Board of Revenue.

The policy protects both employers and employees by clearly stating travel booking procedures, spending limits, safety protocols, and expense claim processes. It typically includes specific provisions for domestic travel between major cities like Karachi, Lahore, and Islamabad, as well as international business trips. Good travel policies help organizations control costs while ensuring staff can travel effectively for work.

Organizations need a Travel Policy when employees start making regular business trips, especially across Pakistan's major commercial hubs. This becomes urgent when your finance team struggles to track expenses, or when different departments follow inconsistent travel booking practices. The Pakistan Revenue Board's strict documentation requirements for business expense claims make this policy essential for tax compliance.

Having clear travel rules becomes critical as your team grows beyond 20 people, or when you're expanding into new cities. It helps prevent expense disputes, ensures fair treatment across departments, and protects both the company and traveling staff from liability issues. Many companies implement these policies before their first audit or when opening regional offices.

• Basic Domestic Travel Policy: Sets standard rules for in-country business trips across Pakistan's major cities, focusing on local transport and accommodation allowances
• International Business Travel Policy: Includes foreign currency regulations, visa requirements, and overseas expense guidelines as per State Bank policies
• Executive Travel Policy: Offers enhanced allowances and flexibility for senior management, with specific provisions for business class travel
• Project-Based Travel Policy: Tailored for specific contract work or temporary assignments, with clear cost allocation guidelines
• Remote Office Travel Policy: Designed for companies with multiple locations, covering inter-office travel and temporary postings

• HR Managers: Draft and maintain the Travel Policy, ensuring it aligns with labor laws and company culture
• Finance Teams: Review expense limits, set reimbursement procedures, and ensure FBR tax compliance
• Department Heads: Approve travel requests and monitor policy compliance within their teams
• Traveling Employees: Follow booking procedures, spending limits, and documentation requirements
• Legal Department: Reviews policy to ensure compliance with Pakistani labor laws and tax regulations
• Travel Coordinators: Handle bookings and ensure adherence to policy guidelines

• Company Travel Data: Review past 6 months of business travel patterns, common destinations, and typical expenses
• Budget Parameters: Set clear limits for hotels, meals, and transport aligned with FBR guidelines
• Stakeholder Input: Gather feedback from finance, HR, and frequent travelers about current pain points
• Local Regulations: Check latest State Bank rules on foreign currency and tax documentation requirements
• Safety Guidelines: Include emergency protocols and insurance coverage details for different regions
• Approval Chain: Define clear authorization levels for different types of travel requests

• Scope Statement: Define who the policy applies to and which types of travel it covers
• Expense Limits: Clear per diem rates and spending caps that comply with FBR guidelines
• Documentation Rules: Required receipts and forms as per Pakistan tax regulations
• Booking Procedures: Authorized travel agents, booking channels, and approval processes
• Safety Protocols: Emergency procedures and insurance requirements
• Reimbursement Process: Timeline and method for expense claims settlement
• Compliance Statement: Reference to relevant labor laws and corporate policies
• Policy Updates: Process for revisions and communication of changes

A Travel Policy differs significantly from a Corporate Policy in several key aspects. While both are internal governance documents, they serve distinct purposes and have different scopes within Pakistani organizations.

• Scope and Focus: Travel Policies specifically address business travel procedures and expenses, while Corporate Policies cover broader organizational principles and conduct standards
• Implementation Level: Travel Policies operate at an operational level with specific expense limits and booking procedures, whereas Corporate Policies establish high-level organizational directives
• Regulatory Alignment: Travel Policies must align with FBR tax requirements and State Bank currency regulations, while Corporate Policies focus on company-wide governance and compliance standards
• Update Frequency: Travel Policies require more frequent updates to reflect changing rates and travel costs, while Corporate Policies typically remain stable for longer periods