Pakistani IT exporters and freelancers: ESFCA retention and the SBP's latest rules

Pakistan's IT exports have grown fast, and the State Bank has eased the rules around them. IT companies and freelancers can keep up to half of their export receipts in dollars, and reporting thresholds were raised. The money still has to arrive in Pakistan first.

Rashidatou K.Payments editor

Published: 13 October 2026
Reading time: 2 min read

A Lahore software house bills a Texas client $18,500 a month. Each payment arrives at its Pakistani bank. Half goes into its Exporters' Special Foreign Currency Account, where it stays in dollars to pay for cloud services, software licences and a conference in Dubai. The rest is converted to rupees for salaries.

The ESFCA

IT companies and freelancers in Pakistan can open an Exporters' Special Foreign Currency Account (ESFCA) alongside their rupee account. In October 2023 the State Bank of Pakistan raised the share they may retain to the greater of $5,000 a month or 50 percent of export proceeds, from 35 percent.

ESFCA balances can be used for permitted current account payments abroad, such as software, hosting, subscriptions and business travel, without prior SBP approval, subject to the bank's checks. The SBP also set a short turnaround for banks to process inward receipts and outward payments from these accounts.

2025 and 2026 changes

The SBP continued easing rules for the sector:

it raised the threshold below which IT companies and freelancers need not submit certain export documents, reported at $25,000,
it simplified onboarding and utilisation rules for freelancer and exporter accounts.

Read the latest Foreign Exchange circulars, or ask your bank, before relying on any threshold.

Proceeds come home

Pakistan's rules require export proceeds to be brought into Pakistan through the banking system. The ESFCA lets you keep part in dollars, in Pakistan. Holding proceeds in an account abroad is a different matter; check with your bank.

Getting the receipt classified

Ask clients to state the purpose clearly, and keep contracts and invoices. Correct purpose codes ensure the receipt counts as IT export proceeds, which matters for the retention limit and for tax.

Paying into Pakistan: the local rail

What	Detail
Local rail	Raast
Run by	State Bank of Pakistan
Settlement	Seconds, 24/7
Published fee	Free for person-to-person transfers

Source: State Bank of Pakistan: Raast. Checked when this guide was last updated; the scheme's own page has the current figures.

Where Rivet fits

Rivet opens business accounts for registered companies after verification. A Pakistan-registered company must bring export proceeds into Pakistan under SBP rules, so check with your bank before receiving funds abroad. Pakistani founders running companies registered elsewhere, such as a US LLC, can use a Rivet business account with US account details on every plan and payouts to 120+ countries, including Pakistan. Rivet is not a bank; regulated partner institutions hold the funds.

See Payoneer alternatives in Pakistan, India and Bangladesh.

Questions people ask

How much of their export earnings can Pakistani IT exporters keep in dollars?

The greater of $5,000 a month or 50 percent of export proceeds, in an ESFCA opened alongside a rupee account.

What can ESFCA balances be used for?

Permitted current account payments abroad, such as software, subscriptions and business expenses, without prior SBP approval, subject to the bank's checks.

Did the SBP change reporting rules recently?

Yes. In 2025 and 2026 the SBP raised the threshold below which IT companies and freelancers need not submit certain export documentation, and simplified other steps. Check the current circular.

Can a Pakistani company keep proceeds in an account abroad?

Pakistan's foreign exchange rules require export proceeds to be brought into Pakistan through banks. Check with your bank before holding funds abroad.

Sources

Written by

Rashidatou K.

Payments editor

Rashidatou writes Rivet's guides to how money moves between countries: the payment rails, what each one costs, and the account details a company needs to get paid in another currency. Every figure in Rashidatou's articles is traced to the scheme rulebook, the regulator or the provider's published price list, and those sources are listed at the end.