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Business & Finance

SBP initiates foreign exchange digitization

  • Mohammad Ashraf Khan, Managing Director, SBP Banking Services Corporation, said that the payment would be transparent and online.
Published February 17, 2021

The State Bank of Pakistan (SBP) has initiated the digitization of foreign exchange.

According to details, Muhammad Ashraf Khan, Managing Director, SBP's Banking Services Corporation, said that the payment of fees or payment to the corporate sector, everything is now possible online.

In a move towards digitizing the SBP Introduces Online Delivery System, after which the hassle of paperwork in the remittance of foreign currency by bank customers abroad will become a thing of past.

Mohammad Ashraf Khan, Managing Director, SBP Banking Services Corporation, said that the payment would be transparent and online.

He said that this move of the central bank will benefit the customer. The customer will get timely updates of his transaction.

Days ago, the SBP notified revisions in chapter 20 of the Foreign Exchange Manual to facilitate startups, fintechs and exports.

The new policy for equity investment abroad will attract foreign direct investment through the establishment of holding companies by Pakistani fintechs and startups; support exports by facilitating exporters to establish subsidiaries or branch offices outside Pakistan; and, allow resident Pakistanis to acquire sweat equity, amongst other changes to the Foreign Exchange (FX) regulations.

It is expected that current changes will help the mutual fund and private equity fund industry to grow by attracting foreign investment in the country. It will also facilitate overseas Pakistanis with Pak Rupee based Roshan Digital Account (RDA) and the non-residents in general to invest in funds in Pakistan.

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