SBP launches FX Regulatory Approval System

Syed Umarullah HussainiWeb Editor

18th Oct, 2020. 03:57 pm
Pakistan’s Total Liquid Foreign Reserves Stand at US$ 23.02 billion

In line with the Government’s vision of Digital Pakistan, the State Bank of Pakistan (SBP) Governor Dr. Reza Baqir has launched the SBP FX Regulatory Approval System (RAS) for end-to-end digitalization of FX related case submission process.

According to the details, this initiative will transform FX operations by replacing paper-based requests with electronic submission which is not only efficient but also cost-effective.

As per SBP, 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-friendly. This development is also congruent with the Government of Pakistan’s vision of
Digital Pakistan.

The Governor, State Bank of Pakistan in his speech referred to various steps taken by State Bank of Pakistan towards digitalization at the State 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.

He highlighted that in order to further liberalize the foreign exchange regime, SBP 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 the acquisition of services from digital service providers up to the US $ 200,000/- per year without any approval from 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 the direct dispatch of documents to the importer while complying with certain conditions related to historical performance on export proceeds realizations.

Governor SBP also mentioned that End-to-End digitalization of process through the commercial banks’ portals will enable customers to lodge their FX related requests from the location of their convenience thereby sparing their valuable time previously spent in navigating the paper-based processes. Governor Baqir appreciated the work of SBP officers as well as bank Presidents and officers for making this digitization possible as well as several other recent schemes of the SBP to support the economy during COVID-19.

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