Karachi, December 21, 2025 — The State Bank of Pakistan (SBP) has updated its Foreign Exchange Manual (FEM) regarding the remittance of foreign payments by entities operating through commercial banks. The changes aim to facilitate ease of doing business and align remittance procedures with current market practices.
The SBP issued Circular dated December 19, 2025, titled “Revision in Instructions for Remittance of Royalty, Franchise and Technical Service (RFT) Fees for Entities in Agriculture, Social, Infrastructure, and Service Sector Projects, including International Food Chains”.
The revision pertains to Para 12(ii)(b), Chapter 14 of the FEM, which governs remittance of RFT fees for entities operating in Agriculture, Social, Infrastructure, and Service Sector projects (excluding financial sector), including international food chains.
Key Changes in Para 12(ii)(b)
Entities in the specified sectors can now remit foreign payments under the following framework:
| Category | Lump Sum / Upfront Fee | Recurring RFT Fee | Duration of Agreement |
| New Operations | Up to USD 250,000* | Up to 8% of net local sales (after deducting sales taxes and cost of imported items) | 10 years |
| Existing Operations | Not allowed | Up to 8% of net local sales (after deducting sales taxes and cost of imported items) | Not allowed further renewal |
Notes:
• The initial one-time fee for new operations must be included within the 8% limit of net local sales and adjusted over the term of the agreement once operations commence.
• Authorized Dealers (ADs) are instructed to ensure strict compliance with the revised instructions when processing remittances.
This amendment is expected to streamline RFT fee remittances, particularly for new businesses and international food chains, enhancing operational flexibility while maintaining regulatory oversight.