“Exporters would be allowed to use their retained funds for legitimate business payments or expenses abroad,” said the State Bank of Pakistan, in its statement
In its attempt to encourage the IT export industry and bring in more foreign earnings into the country, the State Bank of Pakistan has released a notice stating that all IT exporters can now retain around 35% of their earnings in foreign currency accounts.
To make sure this is in effect, the SBP has also ordered banks to make sure that IT exporters get to keep 35% of all their earnings in special foreign currency accounts.
In order for any IT exporter to have this privilege, they will first need to be registered with Pakistan Software Export Board (PSEB) or with Pakistan Software Houses Association (P@SHA).
The SBP states that this decision will help the IT export sector to flourish and will also increase investor interests. “Exporters would be allowed to use their retained funds for legitimate business payments or expenses abroad,” said the SBP..
Apart from that SBP has also directed banks to add new digital channels for the creation of these new special foreign currency accounts.
Relevant bank staff across the country are also being trained for foreign exchange dealing so that IT exporters and freelancers can be facilitated without any issues.
““The amendments will incentivize new entrants in this field to focus on exports and enable existing exporters to boost their business that in turn will create employment opportunities and increase foreign exchange earnings of the country,” said the SBP in its statement.