KARACHI: As Pakistan’s central bank amends regulations for exporters to simplify trade at international digital marketplaces, such as Amazon, e-Bay and Ali Baba, experts believe the new regulatory framework will help increase the value and volume of the country’s exports.

The State Bank of Pakistan issued a circular earlier this week, inviting feedback from the business community, banking industry and other stakeholders before making amendments to the Foreign Exchange Manual (FEM).

The amendment proposals, said the central bank, were to promote ease of doing business by simplifying existing instructions.

“The proposed changes are part of the SBP’s broader agenda to revise the existing foreign exchange regulations to align them with the changing market dynamics, business needs and global trade practices,” said the circular.

The SBP plans to create space for B2B2C, an e-commerce model which combines business-to-business (B2B) and business-to-consumer (B2C) arrangements.

The proposed changes to export regulations also seek to implement the Pakistan Single Window Project that will eliminate the requirement of Electronic Form-E which is currently used by exporters to declare and process shipments.

Other than that, there is also a proposal to delegate certain regulatory approvals required from the SBP to other banks to facilitate the business community.

“It is the democratization of exports and process of making SBP regulations compatible with modern requirements of the day,” Badar Khushnood, who is part of the National E-Commerce Council, told Arab News on Friday. “Now the amended regulations will allow any person to become an exporter.”

Khushnood said the SBP intervention was part of the e-commerce facilitation process, adding it was the first time in history regulations were amended through the recommendation of the industry.

“This will have multiple impacts,” he continued. “It will increase the number of exporters which currently stands at about 35,000, encourage the sale of value-added products in the international market and increase the volume and value of goods.”

Last month, Pakistan was officially added to Amazon’s seller list after a successful trial of some 40 companies for which regulations were made by the National E-Commerce Council.

Additionally, the SBP proposed changes to the FEM to allow exporters to receive cross-border payments against the international sales of goods in 270 days against the existing requirement of 180 days since “the exporters will now be selling goods to end consumers.”

Khushnood said the new regulations would encourage small and medium enterprises and women-owned businesses to scientifically market their products at various international e-commerce platforms.

“It is a good precedent that the central bank is seeking feedback from the business community and other stakeholders,” Zulfiqar Thavir, president of the Union of Small and Medium Enterprises, told Arab News. “Such open-minded SBP policy will not only be applauded by exporters but also create a hassle-free system leading to greater revenue for everyone.”

The process, he added, would also encourage documentation of Pakistan’s economy.