Pakistani businesses in the Gwadar Free Zone can now conduct transactions with the domestic tariff area in Pakistani rupees (PKR), according to a recent amendment by the Federal Board of Revenue (FBR). This change, outlined in SRO 1006(I)/2024, simplifies trade within Pakistan and eliminates the previous requirement for transactions to be conducted in foreign currency.
Benefits of PKR Transactions:
- Reduced Costs: Businesses save on currency conversion fees and potential fluctuations in exchange rates.
- Simplified Transactions: Using PKR eliminates the need for complex currency exchange procedures.
- Increased Efficiency: Faster and smoother trade settlements can occur within the domestic market.
Previously, the Customs Rules 2001 only addressed exports (goods entering the zone) and mandated export formalities similar to those for international trade. However, transactions within Pakistan’s borders can now be conducted in the local currency.
The update also clarifies that goods leaving the Gwadar Free Zone for import into the domestic tariff area must follow standard import procedures, but with the key difference of using PKR for transactions.
This change is expected to streamline trade activities within Pakistan, particularly for businesses operating in the Gwadar Free Zone. The ability to conduct transactions in PKR removes unnecessary complexities and promotes smoother domestic trade.
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