The State Bank of Pakistan has introduced reforms to make it easier for IT exporters and freelancers to receive payments from abroad, while reducing delays and paperwork.
The new measures focus on simplifying procedures, improving service quality and encouraging growth in Pakistan’s fast-expanding tech export sector. Officials said the changes are designed to remove unnecessary steps and bring more clarity to the system.
One of the key changes is the removal of repeated documentation for each transaction. IT exporters and freelancers will no longer need to submit Form “R” every time they receive payments. Instead, they will provide a one-time declaration when opening an account, stating the type of services they offer. Existing account holders will submit this information when required.
Banks, acting as authorised dealers, will now handle the tagging of relevant service and purpose codes for each exporter’s account. This is expected to make reporting smoother and reduce the burden on exporters.
Faster processing and simpler system
The central bank has also introduced a maximum processing time of one working day for both incoming export payments and outward remittances from Exporters’ Special Foreign Currency Accounts. This step is likely to improve cash flow for businesses and freelancers who rely on timely payments.
Documentation requirements for sending payments abroad for services have also been standardised. This move is aimed at ensuring consistency across banks and avoiding confusion for customers.
To improve customer experience, banks have been directed to strengthen their internal systems for handling complaints from IT exporters and freelancers. The goal is to ensure quicker responses and better service.
In addition, reporting requirements have been simplified through changes in Form “R”, the Inward Remittance Voucher, and Form “M”. The threshold for requiring Form “R” has been raised to above US$25,000, which will reduce the need for documentation in smaller transactions.
Banks have also been asked to move towards digital systems, including auto-filled forms to reduce manual entry and errors.
The SBP said these reforms are expected to improve efficiency and support further growth in Pakistan’s IT exports, which have become an important source of foreign exchange in recent years.
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