The State Bank of Pakistan (SBP) has unveiled a series of regulatory reforms aimed at easing financial processes for information technology exporters and freelancers, with a focus on simplifying export earnings procedures, reducing paperwork, and improving banking efficiency.
In an official statement issued on Monday, the central bank said the reforms are designed to facilitate service exporters by streamlining documentation requirements, setting clear transaction timelines, and strengthening complaint resolution systems within the banking sector.
Under the new framework, IT firms and freelancers will no longer be required to submit Form R for each individual export transaction. Instead, exporters will provide a single, one-time declaration at the time of opening a new account, outlining the nature of services being provided to international clients.
For existing account holders, this declaration will be submitted when required. Banks, referred to as authorised dealers, will link the relevant service and purpose codes to exporters’ accounts to ensure smooth processing and accurate reporting of foreign exchange transactions, unless otherwise instructed by the exporter.
To further improve efficiency, the SBP has introduced a strict turnaround time of one working day for processing inward remittances and outward payments from exporters’ Special Foreign Currency Accounts (ESFCAs). This measure is expected to significantly reduce delays in receiving and sending payments related to IT and digital services.
The central bank has also standardized documentation requirements for outward remittances made from ESFCAs for purchasing services from abroad, aiming to ensure consistency across all financial institutions.
In addition, banks have been directed to strengthen their internal complaint handling mechanisms to ensure timely resolution of issues faced by IT companies and freelancers, improving overall service delivery and customer experience.
The reporting system for service exporters and importers has also been simplified through updated versions of Form R, the Inward Remittance Voucher (IRV), and Form M. Notably, the threshold for requiring Form R has been increased to transactions exceeding $25,000 or its equivalent in other currencies, reducing compliance burdens for smaller transactions.
