Digitalization of forex regulatory approvals launched

Category: General , Announcement

State Bank of Pakistan Governor Dr Reza Baqir on Oct 16 launched a Regulatory Approval System (RAS) for end-to-end digitalisation of foreign exchange-related case submission process. The objective of this initiative was to provide a fully digitalised platform to the business community and individuals in approaching banks for their foreign exchange related requests.  The SBP governor believes the initiative will transform FX operations by replacing the paper-based requests with electronic submissions, which is not only efficient but also cost-effective.  He highlighted that in order to further liberalise the foreign exchange regime, the central bank has taken several steps. It expanded the delegation of FX related requests to banks. It includes providing ease in payments for acquisition of services from abroad by one-time registration of contract with SBP and remittance of all subsequent payments by the banks, payments directly through the banks for acquisition of services from digital service providers up to $200,000 per year without any approval from the SBP.  It also includes registration of foreign currency loans from abroad acquired by the private sector by the banks, and facilitating exporters by allowing them to make shipments on ‘Open Account Basis’ with direct dispatch of documents to the importer while complying with certain conditions related to historical performance on export proceeds realisations.

Search

Loaded 0