New rules allow local intermediaries to process payments for global tech firms under regulated cross-border remittance system
The State Bank of Pakistan (SBP) has introduced a new regulatory framework enabling Pakistani companies to act as intermediaries and aggregators for global digital service providers, including Google LLC, Meta Platforms Inc., Microsoft Corporation and Oracle Corporation.
Under the newly issued framework, the SBP has formally notified a list of approved foreign service distributors, allowing local firms to collect payments in Pakistani rupees on behalf of international digital platforms and remit funds abroad through authorized banking channels.
The central bank said the initiative is aimed at facilitating payment flows for digital advertising, IT services, Subscription Video on Demand (SVOD) platforms and digital music services operating in Pakistan through foreign principals or their authorized agents.
The framework has been introduced through the insertion of Para 11A in Chapter 14 of the Foreign Exchange Manual under “Distribution of Services by Intermediaries/Aggregators.”
Under the mechanism, Authorized Dealers (ADs), primarily commercial banks, will process remittances on behalf of Pakistani intermediary companies acting between foreign service providers and local users.
However, the SBP imposed strict conditions on such arrangements. Agreements between intermediaries and foreign service providers must not include provisions related to late payment charges, interest, gambling, immoral activities, financial services, or payments linked to digital assets such as tokens, vouchers or rewards.
The SBP also clarified that only funds collected in Pakistani rupees from domestic users will be eligible for remittance abroad.
The regulator has capped annual remittances at $5 million per entity for foreign service providers listed in Appendix V-151, which currently includes Google, Meta, Microsoft and Oracle. Any transaction exceeding this limit or involving an unlisted entity will require prior approval from the Foreign Exchange Operations Department (FEOD) of SBP-BSC through an Authorized Dealer.
The framework further bars companies involved in inward remittance services — including home remittances and freelancer inflows — from acting as intermediaries or aggregators under this arrangement.
Companies seeking approval will be required to submit detailed agreements, business models, payment structures, projected foreign exchange outflows and compliance undertakings to their banks.
Banks have been instructed to conduct full due diligence under anti-money laundering (AML), counter-terrorism financing (CFT) and taxation regulations before approving any arrangement.
Where related-party relationships exist between foreign service providers and local intermediaries, the SBP has made it mandatory to obtain an external auditor’s certificate confirming arm’s length pricing compliance.
Designated banks will also submit monthly consolidated reports to the FEOD through the Regulatory Approval System (RAS) within five working days after the end of each month.
The SBP warned that any suspicious activity or deviation from permitted scope must be reported immediately to the FEOD before processing remittances.
Industry experts said the framework could streamline cross-border digital payments and improve regulatory oversight of international tech platforms operating in Pakistan.
