A major demand of the IT industry has been fulfilled by the efforts of the Caretaker Federal Minister for IT and Telecom Dr. Umar Saif.
The State Bank of Pakistan (SBP) has allowed IT companies to retain 50 percent of their export proceeds in special foreign currency accounts, a move well-received by industry players.
Earlier IT companies were allowed to retain only 35 percent of their export proceeds in foreign currency accounts.
Sources told ProPakistani that “digitization and enhancement of forex retention for IT companies” was included in the Special Investment Facilitation Council (SIFC) meeting agenda. State Bank officials told the SIFC meeting that after discussions with the IT industry, it has been decided to approve 50% forex retention on IT exports.
On SIFC directions the State Bank of Pakistan will amend foreign exchange regulations and allow the IT exporters and companies to retain 50 percent instead of 35 percent percent of their export proceeds in special foreign currency accounts.
Accordingly, SBP will advise private banks to mandatorily credit 50 percent of IT companies’ export proceeds into these exporters’ special foreign currency accounts.
Sources added that the Ministry of IT and Telecom played an essential role in making the negotiations between the IT industry and the State Bank successful. Caretaker Federal Minister IT Dr. Umar Saif raised the demand of the IT industry before the federal government. Due to the efforts of Dr. Umar Saif, this matter was placed on the agenda of SIFC.
In his statement after the SIFC decision, Caretaker IT Minister Dr. Umar Saif said that with the decision, IT companies will be able to transfer their accounts from abroad to Pakistan. He said that the current volume of IT exports can exceed $2.6 billion to $4 billion.
On the other hand, the IT industry has welcomed this development, while talking to ProPakistani, Chairman Pakistan Software Houses Association (PASHA) Zohaib Khan said that the IT industry’s demand was for permission to use 100 percent of the dollar.
“We also wholeheartedly accept 50 percent also the use of dollars,” he added.
He said that SIFC and Dr. Umar Saif’s initiatives for the IT industry are commendable. IT companies will try to transfer their accounts to Pakistan soon.
