Staff Report
KARACHI: With the aim to support exporters of software and IT services, the State Bank of Pakistan (SBP) has made amendments to its foreign exchange regulations and has advised all the banks to mandatorily allow, till 31st of March, 2023, retention of 35% of their export proceeds in the special foreign currency accounts.
This was disclosed in a statement by SBP issued here on Monday, adding that the exporters would require to be registered either with Pakistan Software Export Board (PSEB) or with P@SHA (Pakistan Software Houses Association).
According to the list issued by SBP, these instructions will be studied in light of the incremental export performance by the sector of IT and the realization of export earnings thereof during the said period.
The exporters would be allowed to utilize their retained funds for legitimate business payments or expenses outside Pakistan.
SBP advises banks to facilitate exporters
The State Bank has advised banks to make arrangements for the provision of digital channels for the opening and operation of these accounts. These banks can now provide facilitation of outward remittances from the retained proceeds via the issuance of corporate debit cards after conducting necessary due diligence.
Moreover, SBP has advised all the concerned banks to institute a mechanism for the enabling and speedy resolution of customers’ complaints. Banks are required to nominate their focal persons at the Head Office level and designate an appropriate official at each branch dealing in the foreign exchange business.
The exporters can also approach the State Bank of Pakistan at [email protected] to share their suggestions and concerns about the matter.
The amendments will facilitate new entrants in this field with the incentive to focus on exports and enable existing exporters to improve their business which in turn will create employment opportunities and enhance the foreign exchange earnings of the country.
According to the statement, the instructions issued to banks announcing the above policy measures can be accessed at the link below: https://www.sbp.org.pk/epd/2023/FECL3.htm.
