The State Bank of Pakistan stated in a statement that exporters will be permitted to use withheld cash for legitimate business payments or costs abroad.
In an effort to promote the IT export business and bring in more foreign revenues, the State Bank of Pakistan has issued a notification allowing IT exporters to retain approximately 35 percent of their earnings in foreign currency accounts.
To ensure this is implemented, the SBP has also instructed banks to ensure that IT exporters are able to retain 35% of their total revenues in foreign currency accounts.
Prior to receiving this privilege, IT exporters must register with the Pakistan Software Export Board (PSEB) or the Pakistan Software Houses Association (P@SHA).
According to the SBP, this move will promote the growth of the IT export sector and stimulate investor interest. The SBP stated that exporters would be permitted to use reserved funds for legitimate business payments or costs abroad.
In addition, the SBP has instructed banks to implement new digital channels for the establishment of these new special foreign currency accounts.
Across the nation, relevant bank personnel are being taught in foreign exchange transactions so that IT exporters and freelancers can be assisted without difficulty.
“The amendments will incentivize new entrants in this field to focus on exports and enable existing exporters to expand their operations, which will generate employment opportunities and increase the country’s foreign exchange earnings,” the SBP said in a statement.