SBP unveils streamlined framework for freelancers' digital accounts

October 23, 2023 (MLN): In order to further facilitate the freelancers, the State Bank of Pakistan (SBP) has developed a comprehensive framework for opening and operations of their bank accounts, circular notification issued by the central bank to the CEOs and Presidents of all banks on Monday. 

Under the framework, freelancers will be able to open an Exporters’ Special Foreign Currency Account (ESFCA) as defined in the Foreign Exchange Manual for retention of export proceeds concurrently with the corresponding primary PKR account, in-person or remotely through digital means.

Accordingly, SBP has increased the permissible retention limit of IT exporters from 35% to 50% of their export proceeds in the ESFCAs.

All Freelancer Digital Accounts (FDA) opened so far, shall be considered to have been opened under this framework.

Moreover, a new Framework for Freelancers has been introduced to further ease the opening of their bank accounts and allow higher retention of amounts in their FCY accounts.

The freelancers will now be able to open the bank accounts both digitally and physically at their choice with minimum documentation requirements.

The freelancers can retain 50% of their export proceeds or USD 5,000/- per month, whichever is higher, in their ESFCAs and can make all payments from these accounts without any approval from SBP or banks.

The banks are advised to facilitate the onboarding of prospective freelancers under the attached framework.

These instructions will supersede other instructions pertaining to the Freelancer Digital Account (FDA) provided in the SBP’s Customers’ Digital Onboarding Framework.

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