Governor SBP launches digitization of FX regulatory approvals

KARACHI: Governor State Bank of Pakistan (SBP) Dr. Reza Baqir on Friday launched the SBP FX Regulatory Approval System (RAS) for end-to-end digitalization of Foreign Exchange (FX) related case submission process, ARY NEWS reported.

The objective of this initiative is to provide a fully digitalized platform to the business community and individuals in approaching banks for their foreign exchange related requests.

The initiative will transform FX operations by replacing the paper-based requests with electronic submissions, which is not only efficient but also cost-effective. This development is also congruent with the Government of Pakistan’s vision of Digital Pakistan.

The governor SBP in his speech referred to various steps taken by State Bank of Pakistan towards digitalization at the central bank and in the banking industry and for enhancing the ease of doing business in the country.

He informed that SBP has worked with various public and private sector entities for providing alternate delivery channels for payments. He also mentioned that the work of micropayment gateway is at an advanced stage, which would revolutionize the payment spectrum in the country.

Sharing his vision on the foreign exchange front, he highlighted that in order to further liberalize the foreign exchange regime, SBP has taken several steps which included expansion of 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 the acquisition of services from digital service providers up to US$ 200,000 per year without any approval from the SBP,” the governor said.

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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 the direct dispatch of documents to the importer while complying with certain conditions related to historical performance on export proceeds realizations.

Advisor to the Prime Minister on Institutional Reforms and Austerity Dr. Ishrat Husain congratulated SBP for launching the online FX Regulatory Approval System and noted that the System was expected to enhance efficiency, transparency, and ease of doing business in the FX regime.

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