The State Bank of Pakistan (SBP) has exempted IT companies and freelancers from declaring export proceeds of up to $25,000, easing reporting requirements to support the growth of Pakistan’s IT sector.
According to an official notification issued on Monday, the central bank has raised the reporting threshold for export proceeds from $10,000 to $25,000, simplifying compliance for exporters.
In addition, IT firms and freelancers will continue to be allowed to retain $5,000 per month or 50% of their export earnings, whichever is higher, in their Exporters’ Special Foreign Currency Accounts (ESFCAs). These funds can be used for various business-related expenses, including:
- Import of goods
- Advance payments for imports
- Foreign consultancy services
- Software and IT service subscriptions
- Payments to overseas vendors
The SBP has also updated reporting requirements for commercial banks, directing them to provide more detailed information on outward payments. Revised formats for Form ‘R’ (inward remittances above $25,000) and Form ‘M’(outward remittances) have been introduced with immediate effect.
To improve ease of doing business, banks have been instructed to digitize Form ‘R’ and Form ‘M’, enabling auto-population of customer data and streamlining the reporting process.
Officials believe these measures will enhance operational efficiency and encourage exporters to bring more foreign exchange into the country.
Exchange Companies Association of Pakistan President Zafar Paracha said the relaxed regulations would accelerate export proceeds inflows and support the growth of IT exports.
The move comes as Pakistan’s IT export sector faces a slowdown. According to SBP data, IT export receipts declined to $365 million in February 2026, down from $374 million in January and $437 million in December 2025.
Despite the recent dip, total IT and IT-enabled services exports stood at $2.97 billion during the July–February period of the current fiscal year.
The latest policy changes are expected to provide relief to exporters and freelancers while helping boost Pakistan’s overall IT export performance.
