SBP eases export procedures for IT firms and freelancers

KARACHI: The State Bank of Pakistan on Monday announced a set of measures aimed at making export-related procedures easier for information technology companies and freelancers.

In a circular, the central bank said, ‘These reforms are designed to simplify the export realisation procedures, standardise documentation requirements, set transaction processing timelines, and strengthen complaint resolution mechanisms’.

Under the new framework, IT exporters and freelancers will no longer have to submit Form R for every separate export transaction. Instead, they will file a one-time declaration when opening a new account, clearly stating the type of services they provide abroad. For existing account holders, the declaration will be required as and when needed.

The SBP said authorised dealers, or banks, will assign the relevant service and purpose codes to exporters’ accounts for reporting and processing purposes unless the exporter advises otherwise.

The central bank has also introduced a maximum turnaround time of one working day for the processing of inward export receipts and outward remittances from Exporters’ Special Foreign Currency Accounts.

According to the SBP, documentation requirements for outward remittances from these accounts for the acquisition of services from abroad have been standardised in order to improve clarity and consistency across banks.

Banks have also been directed to put in place effective internal arrangements to ensure timely handling of complaints lodged by IT companies and freelancers, the SBP said, adding that the move is intended to improve service quality and responsiveness.

Changes in reporting and documentation

The State Bank said reporting requirements for exporters and importers of services have been simplified through revisions in Form R, the Inward Remittance Voucher and Form M.

The threshold for obtaining Form R has been raised to above $25,000, or the equivalent in other currencies, to provide greater convenience to beneficiaries.

In addition, banks have been advised to digitalise these forms and introduce auto-population of customers’ basic data to support ease of doing business.

IT exports growth

The development comes as Pakistan’s IT exports recorded growth in the last fiscal year. According to the figures cited in the report, the country’s IT exports rose 18 per cent to $3.8 billion in FY25 compared to the previous year.

The growth was driven by software development, freelance earnings and government incentives. The report also noted that freelancers and small and medium-sized enterprises are major contributors, with freelance inflows estimated to account for a significant share of the total.