FBR Authorizes PKR Transactions Between Gwadar Free Zone and Tariff Area

The Federal Board of Revenue (FBR) has officially sanctioned the use of Pakistani rupees (PKR) for business transactions between the Gwadar Free Zone and the tariff area. This change was formalized with the issuance of SRO 1006(I)/2024, amending the Customs Rules of 2001 on Monday.

Previously, proposed changes were outlined in SRO 805(I)/2024, dated June 3, 2024. The revised regulations now permit transactions in PKR for goods traded between the Gwadar Free Zone and the tariff area, streamlining economic activities.

Under the new rules, goods entering the zone from the tariff area, except for minor items, must complete export formalities similar to those for international exports. Transactions between the two zones in PKR are now explicitly allowed. Furthermore, any goods moved from the free zone to the tariff area will follow standard import procedures, with transactions also permitted in PKR.

These amendments aim to enhance trade efficiency and economic flexibility by reducing dependency on foreign currency, thereby supporting local businesses and the broader economy.