In an effort to further enhance ease of doing business in Pakistan, the State Bank of Pakistan (SBP) has amended its Foreign Exchange Manual. The new amendment is expected to enable the companies in Pakistan to make instant payments for acquiring digital services from globally recognized digital service provider companies against acquisition of digital services by local companies, without much hassle.
After addition of a new para in Foreign Exchange Manual, the Authorized Dealers will have general permission to release foreign exchange up to a maximum of USD 200,000/-, per year. This will be for each company/firm incorporated/ established in Pakistan on account of commercial payments, pertaining to digital services, primarily in favor of 62 digital service provider companies (including their affiliates or associated entities), listed in the Circular. However, within this limit, authorized dealers can release foreign exchange up to a maximum of USD 25,000/- per annum to digital service providers not included in the list of 62 entities. The Authorized Dealers may offer the digital channels to their clients, for making these payments. The circular can be accessed at the following link: http://www.sbp.org.pk/epd/2020/FEC4.htm
By accessing various services including advertising, hosting, database access, accounting management, skill development and customer support etc., from these global companies, local businesses are expected to increase their outreach to wider customer base locally and abroad, which would help them increase their footprint and achieve greater efficiency.