The State Bank of Pakistan (SBP) has directed authorized dealers to facilitate IT & ITeS exporters in swiftly opening foreign currency accounts to retain up to 35 percent of export proceeds and to ensure timely credit of remittances in Pakistani Rupee (PKR) accounts of the exporters.
In a meeting with representatives of the Ministry of Information Technology and Telecommunication, Pakistan Software Export Board (PSEB), and Pakistan Software Houses Association ([email protected]), SBP Governor Jameel Ahmad assured that difficulties being faced by IT exporters in converting the foreign currency remittances into PKR accounts will be resolved.
He further assured that the reported issues will be rectified without delay and emails received in this regard will be addressed immediately. The progress on the resolution of issues will also be reviewed periodically.
The IT ministry, PSEB, and [email protected] have been working with the central bank to ease the foreign currency retention and utilization issues faced by the IT industry.
In order to address and resolve the issues, SBP issued a circular titled “Exports of Software, Information Technology (IT) and IT Enabled Services (ITeS)” and a circular titled “Utilization of Funds held in Exporters’ Special Foreign Currency Account” on 13th January. However, due to misinterpretation by the commercial banks, the exporters faced difficulties in converting the foreign currency remittances into PKR.
As a result, SBP issued directions to the authorized dealers on 27th January to facilitate IT & ITeS exporters in swiftly opening foreign currency accounts to retain up to 35 percent of export proceeds, and to ensure timely credit of remittances in PKR accounts of the exporters until the special foreign currency accounts are opened or the exporter declines to avail the facility of foreign currency retention.
The facilitation provided by the central bank in response to the IT & ITeS industry will improve the business environment and deliver ease of business for the exporters.