SBP proposes amendments in rules to facilitate digital marketplace selling

KARACHI: The (SBP) central bank has proposed changes in the foreign exchange regulations to facilitate Pakistani exporters to sell their products through the international digital marketplace.

The State Bank of Pakistan (SBP) on Monday issued regulations to propose changes in its regulatory instructions for exports of goods from Pakistan.

“These changes aim at promoting ease of doing business by simplifying the existing instructions,” it said.
The key amendments proposed included a framework for facilitating Pakistani exporters to sell their products through international digital marketplaces, including Amazon, e-Bay, and Alibaba, under the business-to-business-to-consumer (B2B2C) e-Commerce model.

The amendments required in export regulations to implement the Pakistan Single Window project, which would eliminate the requirement of electronic Form-E, are also part of the revised draft.

Likewise, in some other areas, regulatory approvals required from the central bank have been proposed to be delegated to banks to facilitate the business community.

The proposed changes are a part of the SBP’s broader agenda to revise the existing foreign exchange regulations to align them with the changing market dynamics, business needs, and global trade practices.
As a part of this process, 11 chapters (of 22) of the Foreign Exchange Manual had already been revised through a consultative process with the banking industry and the business community. The latest amendments in foreign exchange instructions pertaining to exports are provided in Chapter 12 of the Foreign Exchange Manual.

The State Bank encourages and welcomes feedback/suggestions from the business community, banking industry, and other stakeholders, on the revised draft of Chapter-12 (Exports) of the FE Manual, for any further value addition/improvement.

The SBP has invited feedback on the proposed changes till Sunday, June 20, 2021.