Pakistan central bank simplifies processes for IT export sector

The State Bank of Pakistan (SBP) on Monday announced a series of reforms aimed at easing procedures for IT exporters and freelancers, eliminating repetitive documentation and introducing faster transaction processing to support the country’s growing technology exports sector.

The measures are designed to simplify export realization processes, standardize documentation requirements and improve complaint resolution systems, the central bank said in a statement.

Under the new rules, IT companies and freelancers will no longer need to submit Form “R” for each individual export transaction.

Instead, exporters will provide a one-time declaration outlining the nature of their services when opening a new account, or later if required for existing accounts.

Banks, acting as authorized dealers, will assign relevant service and purpose codes to exporters’ accounts for reporting and processing transactions unless instructed otherwise by the customer.

The SBP also introduced a maximum processing time of one working day for inward export receipts and outward remittances from Exporters’ Special Foreign Currency Accounts (ESFCAs), aiming to speed up financial flows.

Documentation requirements for outward remittances from ESFCAs — used to acquire services from abroad — have been standardized to ensure consistency across banks.

In addition, the central bank directed banks to establish effective internal systems for resolving complaints from IT firms and freelancers in a timely manner.

The reforms also include simplified reporting requirements through revisions to Form “R,” the Inward Remittance Voucher (IRV) and Form “M.” The threshold for obtaining Form “R” has been raised to transactions above $25,000 or equivalent, reducing compliance burdens for smaller payments.

Banks have further been instructed to digitize Forms “R” and “M,” including auto-population features for basic customer data to improve efficiency and ease of doing business.

Under existing rules in the Foreign Exchange Manual, banks are required to report foreign exchange transaction data to the SBP’s International Transaction Reporting System. To align with current requirements and remove redundancies, the central bank has also revised formats for key reporting appendices.

The SBP said the measures are expected to enhance operational efficiency and contribute to the growth of Pakistan’s IT exports.

Banks have been directed to implement the revised formats immediately and ensure strict compliance with responsibilities for providing information under the updated reporting framework.