The State Bank of Pakistan (SBP) on Monday introduced a set of reforms to facilitate I.T. exporters and freelancers, aiming to simplify export realization procedures, standardize documentation requirements, set transaction processing timelines, and strengthen complaint resolution mechanisms.
In a statement, the central bank said it was waiving a requirement for I.T. companies and freelancers to submit Form “R” for every individual export transaction. Instead, they would be required to provide a one-time declaration, clearly specifying the nature of services being offered overseas, at the time of opening of new account and, in the case of existing customers, as and when required. Authorized dealers (banks) would tag the relevant service and purpose code with the exporters’ account for reporting and processing export transactions, unless advised otherwise by the exporter.
Additionally, a maximum turnaround time of one working day has been introduced for processing inward export receipts and outward remittances from Exporters’ Special Foreign Currency Accounts (ESFCAs). Documentation requirements for outward remittances from ESFCAs for acquiring services from abroad have been standardized to promote clarity and consistency across banks.
Banks have also been instructed to establish effective internal systems to ensure timely resolution of complaints raised by I.T. companies and freelancers, enhancing service quality and responsiveness.
Besides the above measures, the reporting requirements for exporters and importers of services have also been simplified through revisions in Form “R,” the Inward Remittance Voucher (IRV), and Form “M.” The threshold level for obtaining Form “R” has been increased to above $25,000 (or equivalent in other currencies), providing convenience to the beneficiaries. Additionally, banks have been advised to digitalize Form “R” and Form “M” with auto-population functionality for the customer’s basic data to further promote ease of doing business.
The SBP said it believes these measures would significantly enhance operational efficiency and contribute meaningfully towards the growth of Pakistan’s I.T. exports.