SBP eases export reporting rules to boost IT sector growth

The State Bank of Pakistan (SBP) has relaxed reporting requirements for IT companies and freelancers, allowing export proceeds of up to $25,000 to be exempt from declaration. The move aims to accelerate the growth of Pakistan’s IT exports and simplify inward remittance processes.

Under the revised rules, IT firms and freelancers can retain $5,000 per month or 50% of their export proceeds, whichever is higher, in Exporters’ Special Foreign Currency Accounts (ESFCAs). Funds in these accounts can be used for imports, advance payments, foreign consultancy, software subscriptions, and overseas vendor payments, but cannot be transferred to other foreign currency accounts.

The SBP has also updated reporting formats for banks, requiring authorized dealers to capture detailed transaction purposes for remittances above $25,000, using digitalized Forms “R” and “M” with auto-populated customer data.

The move comes amid a declining trend in IT export receipts, which fell to $365 million in February 2026, down from $374 million in January. For the period July–February, IT and IT-enabled services exports totaled $2.97 billion, highlighting the sector’s potential for growth under streamlined regulatory measures.