SBP eases export rules for IT freelancers

The State Bank of Pakistan (SBP) has introduced a set of reforms to facilitate IT exporters and freelancers, according to a statement issued by the central bank on Monday. The reforms are designed to simplify export realisation procedures, standardise documentation requirements, set transaction processing timelines and strengthen complaint resolution mechanisms. IT companies and freelancers will no longer be required to submit Form R for every individual export transaction. Instead, they will provide a one-time declaration, clearly specifying the nature of services being offered overseas, at the time of opening a new account. For existing customers, the declaration will be required as and when necessary. Authorised dealers (banks) will tag the relevant service and purpose code with the exporters' account for reporting and processing export transactions, unless advised otherwise by the exporter. 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 standardised to promote clarity and consistency across banks. Banks have been instructed to establish effective internal systems to ensure timely resolution of complaints raised by IT companies and freelancers, enhancing service quality and responsiveness. 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 beneficiaries.