The State Bank of Pakistan (SBP) has issued a mandatory directive requiring all commercial banks to establish Electronic Data Interchange (EDI) with the Pakistan Single Window (PSW). This step is aimed at ensuring seamless, secure, and efficient sharing of customer bank profiles and financial data across the banking and trade ecosystem.
The new guidelines highlight that commercial banks must integrate their systems with the PSW platform in strict compliance with the technical specifications and documentation prescribed by the central bank. This integration will enable banks to electronically share vital information including customer profiles, financial instruments, Business-to-Debit Advices (BDAs), and other essential data points.
According to SBP, the adoption of EDI is expected to improve transparency, eliminate manual intervention, and enhance operational efficiency in both cross-border trade and domestic financial transactions. By digitizing data exchange, the regulator aims to create a more streamlined and accountable financial system that aligns with global regulatory standards.
The directive also emphasizes the importance of data security, confidentiality, and business continuity planning. Banks are required to ensure that the systems they deploy meet international benchmarks for secure data handling and resilience, reducing the risk of breaches or operational disruptions. Importantly, for all foreign exchange-related transactions, any action completed via EDI will be treated as if it has been directly carried out by the concerned bank, giving full regulatory recognition to the electronic process.
As part of the compliance framework, banks must maintain updated risk profiles of their customers in accordance with prevailing regulations. When an importer registers on the PSW system, an electronic request will be generated and transmitted to the relevant bank for verification of critical details such as IBAN, contact information, National Tax Number (NTN), and permissible modes of payment. This automated verification ensures consistency and reduces the chances of error or fraudulent practices.
In addition, SBP has made it compulsory for banks to communicate any changes in an importer’s status to PSW in real time. This includes updates related to restrictions, suspensions, or deactivation of customer accounts. Such real-time reporting will strengthen accountability and ensure reliability across all banking operations, particularly in areas related to foreign trade and regulatory compliance.
Industry analysts believe the integration of EDI with PSW represents a transformative step for Pakistan’s financial sector, bridging gaps between trade facilitation and banking oversight. By embedding transparency and speed into the system, the move is expected to enhance investor confidence, reduce transaction costs, and contribute to broader financial stability.
The SBP directive signals a decisive push toward digitalization in banking operations, placing emphasis on efficiency, regulatory compliance, and the adoption of technology to strengthen Pakistan’s financial ecosystem.
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