SBP proposes framework for exporters to sell through online platforms

State Bank of Pakistan (SBP) has proposed changes in its regulatory instructions for exports of goods from Pakistan, as it aims to modernise foreign exchange regulations, it said in press release issued on Monday.

The key amendments proposed include framework for facilitating Pakistani exporters to sell their products through international digital marketplaces including Amazon, e-Bay, Ali Baba under Business to Business to Consumer (B2B2C) e-Commerce model, read SBP statement.

Under the framework for exports of goods under B2B2C Model a number of amendments have been proposed such as:

Authorized Dealers (ADs) shall open a specific account of the customer for facilitating the B2B2C ecommerce exports. Authorized dealers shall open the account following the applicable regulations on KYC/CDD. AD shall obtain, inter alia, the documentary evidence of registration of the exporter with the international platform.

Electronic Form-E/ Financial Instruments issued against such exporters shall be issued with remarks B2B2C exports.

As per the proposed amendments, the goods under this framework will be exported to a ‘Consignee’, who may not be ultimate buyers of the goods rather providing the warehousing services. Under the proposed amendments ADs may allow exporter to make shipping documents in the name of the consignee, which may be foreign marketplace or third party warehousing services provider, and dispatch the same directly to the consignee or its agent in the country of final destination.

Meanwhile, the value of exports proceeds can be received from abroad by an Authorized Dealer through banking channel directly; International payment scheme/gateway; In Pakistan Rupee from Non-Resident Rupee Account Repatriable (NRAR).

Furthermore, SBP said that the amendments required in export regulations to implement Pakistan Single Window Project, which would eliminate the requirement of Electronic Form-E, are also part of revised draft.

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

The central bank was of the view that the proposed changes are a part of its broader agenda to revise the existing foreign exchange regulations to align them with the changing market dynamics, business needs and global trade practices.

The latest amendments in foreign exchange instructions pertaining to exports are provided in Chapter 12 of the Foreign Exchange Manual. The central bank has invited feedback/comments from the stakeholders on the proposed amendments.