The State Bank of Pakistan (SBP) has updated its foreign exchange income reporting format to better serve IT exporters, freelancers, and service providers. These changes apply to the electronic Proceed Realization Certificate (ePRC) and the Statement of PRCs (S-PRCs). The revised formats will become effective from October 1, 2025.
The SBP said the new format addresses long-standing demands from IT professionals and freelancers. Now, income can be reported clearly in both local and foreign currencies. This change aims to simplify tax reporting and reduce confusion, helping professionals avoid paying taxes on unrelated income sources. The SBP has directed banks to update their systems to comply with the new format by the deadline.
The ePRC system was introduced in 2022 as a way to verify foreign remittances such as exports, equity, or freelance payments. These electronic certificates confirm that funds received from abroad have been deposited and converted into Pakistani rupees. This helps customers prove the origin of their income and is essential for tax and legal purposes.
Freelancer groups have welcomed the update. Ibrahim Amin, Chairman of the Pakistan Association of Freelancers (PAFLA), said the changes will prevent double taxation and help tax authorities calculate liabilities more accurately. This move is expected to bring financial relief to thousands of freelancers across Pakistan.
With over $2.7 billion in IT exports and $400 million in IT remittances recorded in FY25’s first nine months, Pakistan’s tech industry is growing fast. Muhammad Umair Nizam from PASHA said this update could help increase foreign exchange inflows. However, he urged the government to resolve broader tax challenges so that the sector can reach its $25 billion annual export target by FY2029.