IMPLEMENTATION OF FX PORTAL FOR END-TO-END DIGITALIZATION OF FX CASES

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Introduction:

Governor State Bank of Pakistan (SBP), launched the SBP FX Regulatory Approval System (RAS) for End-to-End Digitalization of Foreign Exchange (FX) related case submission process in an event held on October 16, 2020 in Karachi, that was attended by key stakeholders including executives from SBP, SBP BSC, banks, chamber of commerce & industry and business community.

Objective:

The objective of this initiative is to provide a fully digitalized platform to the business community and individuals in approaching banks for their foreign exchange related requests. The initiative will transform FX operations by replacing the paper-based requests with electronic submissions, which is not only efficient but also cost effective. This development is in line with the with the Government of Pakistan’s vision of Digital Pakistan.

Broadly speaking the FX approval is required at 2 levels. One at the level of the bank and second is at the level of the SBP. Now banks can provide approval in an efficient manner for the request made by their customers and the customers’ can also track the status of their request on real time basis. Where banks do not have the delegated authority to provide approvals then the said request can be directly forwarded by the bank to SBP and the status in this case also be tracked by the customer on real time basis.

Types of transactions:

Following are some of the examples of transactions, the approval of which may be sought by using the FX portal.

  1. Registration of loan contract from abroad.
  2. Request for exchange entitlement certificate for issue of shares to sponsors against plant and machinery.
  3. Registration of shares on repatriable basis.
  4. Registration of contact to receive foreign exchange payment for services rendered abroad.
  5. Import on Open account basis.