In a move that signals growing institutional support for Pakistan’s digital economy, the State Bank of Pakistan (SBP) has announced a major revision to the reporting formats for the electronic Proceed Realization Certificate (ePRC) and the Statement of PRCs (S-PRCs). The changes, set to take effect from October 1, 2025, are targeted at simplifying foreign exchange income documentation for IT exporters, freelancers, and service providers across the country.
This revision comes in response to persistent demands from technology service exporters and freelance professionals, who have long faced hurdles in documenting income from international clients. The previous format of the ePRC made it difficult for many individuals to properly report foreign earnings to tax authorities, often leading to complications in tax assessments and in some cases, unintended double taxation.
Under the new structure, the reporting format has been made more transparent and user-friendly, allowing recipients of foreign remittances to categorize and validate income in both local and foreign currency terms. This improvement will directly benefit Pakistan’s growing IT and freelance sectors, making it easier for professionals to stay compliant with tax regulations without facing unnecessary financial penalties.
Effective October 1, 2025, all banks operating in Pakistan are required to adopt the revised formats for ePRCs and S-PRCs. The SBP has issued clear instructions to banking institutions to implement the necessary system updates ahead of this deadline to ensure seamless issuance of certificates in line with the new standards.
The ePRC is an electronic certificate introduced in August 2022 that acts as official documentation confirming the inflow of foreign remittances into Pakistani bank accounts. It serves as proof that remittances related to services, exports, or investments have been received from abroad and converted into Pakistani rupees through authorized channels.
The revised format is expected to reduce administrative burdens and support compliance with evolving tax norms. According to Ibrahim Amin, Chairman of the Pakistan Association of Freelancers (PAFLA), this update is a welcome development for the freelance workforce. He noted that the new format would help freelancers avoid double taxation by allowing them to segregate income from relevant sources only, instead of being taxed on aggregate inflows which may include personal transfers or unrelated funds.
The IT sector in Pakistan has witnessed notable growth, with IT remittances surpassing $400 million in the first nine months of the fiscal year 2025. Total IT exports during this period reached an impressive $2.7 billion, underscoring the significance of this segment in Pakistan’s overall economic landscape.
Commenting on the reform, Muhammad Umair Nizam, Senior Vice Chairman of the Pakistan Software Houses Association (PASHA), welcomed the SBP’s decision. He stressed that while this step would likely improve documentation and increase foreign inflows, further action was needed from tax authorities to address lingering structural challenges. These include creating a stable tax regime, offering export incentives, and removing procedural delays in order to hit the national target of $25 billion in IT exports by FY29.
This regulatory update is seen as a positive stride towards formalizing the digital economy and aligning Pakistan’s regulatory infrastructure with the demands of its expanding services sector. As freelancers and IT exporters prepare for the transition, the reform may serve as a catalyst for greater integration of the informal tech economy into the formal financial system.