The State Bank of Pakistan (SBP) has unveiled a set of reforms aimed at simplifying processes for IT exporters and freelancers. These changes focus on easing export realization procedures, standardizing documentation, setting clear transaction timelines, and enhancing complaint resolution systems.
Under the updated regulations, IT firms and freelancers are no longer required to submit Form “R” for each export transaction. Instead, they will provide a one-time declaration detailing their service nature when opening a new bank account or as needed for existing customers. Banks will then allocate the relevant service and purpose codes to streamline processing and reporting.
In a significant development, the SBP has mandated a maximum turnaround time of one working day for processing inward export receipts and outward remittances from Exporters’ Special Foreign Currency Accounts (ESFCAs). Documentation for outward remittances from ESFCAs related to acquiring foreign services has also been standardized to ensure uniformity across banks.
Meanwhile, banks have been directed to bolster their internal complaint management systems to better serve IT companies and freelancers, aiming to enhance responsiveness and service quality. Reporting requirements for service exporters and importers have been simplified through revisions to Form “R”, the Inward Remittance Voucher (IRV), and Form “M”. Notably, the threshold for submitting Form “R” has been raised to transactions exceeding US$ 25,000 or its equivalent in other currencies, offering greater convenience.
Additionally, banks are encouraged to digitalize Forms “R” and “M” with auto-population features for basic customer data, further facilitating ease of business operations. The SBP anticipates that these reforms will significantly improve operational efficiency and contribute to the expansion of Pakistan’s IT export sector.
