State Bank orders authorized dealers to expeditiously assist IT and ITeS exporters

State Bank orders authorized, The Government of Pakistan is actively pursuing the agenda of enhancing IT & ITeS exports.

In this regard, the Ministry of Information Technology and Telecommunication. Pakistan Software Export Board (PSEB), and the Pakistan Software Houses Association (P@SHA) have been working with the State Bank of Pakistan (SBP). To ease the foreign currency retention and utilization issues faced by the IT industry.

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State Bank orders authorized, Exports of Software.

In order to address and resolve the issues, SBP has issued EPD circular letter No. 02 of 2023 titled “Exports of Software, Information Technology (IT) and IT Enabled Services (ITeS)” and EPD circular letter No. 03 of 2023 titled “Utilization of Funds held in Exporters’ Special Foreign Currency Account” on 13th January, 2023.

However, due to misinterpretation by the commercial banks, the exporters faced difficulties in converting the foreign currency remittances into PKR.

The Finance Minister and Governor SBP discussed and underlined this issue.

SBP issued directions to the authorized dealers.

State Bank orders authorized, As a result, SBP issued directions to the authorized dealers vide EDP ICM letter No. 416458 on 27th January, 2023 to facilitate IT & ITeS exporters. Furthermore, swiftly opening of foreign currency accounts to retain up to 35% of export proceeds. And to ensure timely credit of remittances in PKR accounts of the exporters. Prior to the opening of the exporter’s or particular foreign currency accounts. However, declines to avail the facility of foreign currency retention.

However, The Governor SBP met with PSEB/MoITT and P@SHA representatives on 30th January, 2023 to review the industry issues and concerns. The Governor has vowed to immediately address any issues raised and to promptly respond to emails received to facilitation.itexporters@sbp.org.pk.

State Bank orders authorized, IT & ITeS exporters.

SBP, PSEB/MoITT, and P@SHA shall periodically examine the status of the problem-solving efforts.

IT & ITeS exporters are encouraged to raise their specific issues and concerns including concerned bank’s details at the facilitation email address provided by SBP with copy to fin@pseb.org.pk and policy@pasha.org.pk.

Furthermore, Facilitation provided by SBP in response to the IT & ITeS industry demands advocated by PSEB/MOITT and P@SHA will improve the business environment and deliver ease of business for the exporters.

State Bank orders authorized, Anyhow, IT & ITeS businesses and freelancers are encouraged to join hands with the government at this important juncture and avail the opportunity by remitting export proceeds to the country hassle free.