State Bank of Pakistan (SBP) has completed the project of digitalization forex cases namely End-to-End Digitalization of FX Cases.
The initiative aims to streamline and enhance the ease of doing business by providing a fully digitalized platform for businesses and individuals seeking foreign exchange-related approvals from the central bank.
The project, initiated by the SBP, was carried out in two distinct phases, with the ultimate goal of fostering operational efficiency and reducing costs while maintaining transparency and expediting decision-making processes.
The first phase, launched on March 24, 2020, connected banks with the ‘SBP FX Regulatory Approval System (RAS).’ This digital platform allowed banks to electronically submit foreign exchange cases for regulatory approval by the SBP and SBP-Banking Services Corporation (BSC). The system incorporated features such as transparent case tracking mechanisms through customer emails and a dedicated case status information option on the SBP website.
Since its inception, the system has proven successful, with a total of 59,176 FX cases submitted digitally by banks until July 31, 2021, replacing the traditional paper-based submission process.
Building on this success, the second phase extended the digital facilitation to businesses. Banks developed portals to digitally receive FX cases from their clients for processing. The project was officially launched on October 16, 2020, showcasing the SBP FX RAS and FX portals of eight banks. By June 30, 2021, a total of 27 banks, representing 99.6% of the industry’s FX business, had launched their portals for digital submission of FX cases by clients. The remaining bank is expected to fully launch its portal by the end of September 2021.
The banks have prioritized security, user-friendliness, and comprehensive coverage of FX-related requests in the development of their respective portals. Additionally, efforts have been made to create awareness among business customers through various communication channels such as emails, SMS, print, electronic, and social media. Dedicated FX helpdesks have also been established in bank branches to assist businesses and the general public in adopting FX portals.
To ensure the effectiveness of the initiative, SBP, in collaboration with the Pakistan Business Council and Overseas Investors Chambers of Commerce, conducted two rounds of surveys to gather feedback from businesses regarding the banks’ FX portals. The response from the business community has been positive, expressing satisfaction with the digitalization of FX cases and the ease provided through the usage of FX portals.
The completion of this initiative marks a significant step forward in reducing processing time, enhancing efficiency, and promoting environmental sustainability by minimizing paper usage. Businesses and individuals are expected to reap the benefits of this digital transformation in the form of streamlined processes and improved overall efficiency in foreign exchange-related transactions.
