To make quick and hassle-free payments for digital services to internationally acclaimed digital service providers a possibility, State Bank of Pakistan has recently launched an improvised system.

SBP has generated a list of around 62 providers*. Banks can relax foreign exchange up to $200,000 annually on account of local companies for the listed 62 providers. However, for those not on the list, banks can only release foreign exchange up to $25000 annually.

To make necessary payment for digital services to their customers, banks can leverage their digital channels. This facility would allow the companies to skip regulatory approval altogether. They can avail services like account management, skill development, advertising, etc.. These are likely to lead to a rise in their customer base locally and internationally.

Earlier: In November 2019, SBP’s additional clause of contract’s registration posed serious issues for local businesses in terms of making payments to digital service providers internationally.

After reaching a mutual consensus with all the stakeholders recently, there is a new system of payments for digital services, aka ‘payment vs. receipt’ based on yearly limits to the existing framework. Consequently, businesses in the IT and financial sectors are likely to benefit from this new policy change.

List of 62 service providers as per the State Bank of Pakistan:

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