Revision in Instructions for Remittance of Royalty, Franchise and Technical Service Fees for Agriculture, Social, Infrastructure and Service Sector Projects

EPD Circular Letter No. 12 — December 19, 2025

The Presidents/Chief Executives of All

Authorized Dealers in Foreign Exchange

Dear Sir / Madam,

Revision in Instructions for Remittance of Royalty, Franchise and Technical Service (RFT) Fees for the Entities Operating in Agriculture, Social, Infrastructure and Service Sector projects, including International Food Chains

Attention of Authorized Dealers is invited to Para 12(ii)(b), Chapter 14 of the Foreign Exchange Manual (FEM), which sets out the framework for remittances of RFT fees by entities operating in Agriculture, Social, Infrastructure and Service Sector projects, including international food chains.

2. In order to promote ease of doing business and realign the relevant instructions with market dynamics, the aforesaid para has suitably been revised. The same is attached as Annexure-A.
3. Authorized Dealers are advised to ensure meticulous compliance of these revised instructions.

Yours sincerely,

Dr. Asif Ali
Director

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Annexure-A
State Bank of Pakistan, I.I. Chundrigar Road, Karachi.
State Bank of Pakistan StateBank_Pak www.sbp.org.pk Exchange Policy Department Revised Para 12(ii)(b) Agriculture, Social, Infrastructure and Service Sector projects including international food chains (excluding financial sector) (i) The entities belonging to the above sectors may be allowed by Authorized Dealers to remit recurring payments up to 8 percent of their net local sales (after deducting sales taxes and the cost of imported items) under their respective RFT agreements. Further, entities starting new operations may be allowed an initial lump sum or one-time fee of up to USD 250,000 payable to their foreign collaborators providing RFT services. However, such a fee shall be included within the 8% of net sales limit, rather than being over and above it, and shall be adjusted over the term of the agreement, from the recurring fee payments, once the operations commence. Permissible RFT structure for Agriculture, Social, Infrastructure and Service Sector Category Lump Sum / Upfront Fee Recurring RFT Fee Duration of Agreement New Operations Up to USD 250,000* Up to 8% of net sales (after deducting taxes & cost of imported items) 10 years (further renewable) Existing Operations Not allowed

• Requests exceeding USD 250,000/- shall be referred to the Board of Investment for a decision.