SBP Directs Banks to Credit 35% Exports Proceeds of IT Companies into Special Forex Accounts

In order to encourage IT companies and freelancers to bring their foreign exchange earnings into the country, the State Bank of Pakistan (SBP) directed banks to credit 35 percent of the export proceeds into these exporters’ special foreign currency accounts mandatorily. The exporters should be registered with Pakistan Software Export Board (PSEB) or Pakistan Software Houses Association (P@SHA), and involved in the export of Software, Information Technology (IT) services, and IT Enabled Services (ITeS). However, these instructions are valid until March 31, 2023. These instructions will be reviewed in light of incremental export performance by the IT sector and the realization of export proceeds thereof during this period. Banks have been advised to facilitate these exporters in opening their exporters’ special FCY accounts and for carrying out remittances transaction from their Exporters’ Special FCY retention accounts by issuing corporate debit cards, and providing digital platforms including FX digital portal, after necessary due diligence and establishing mechanism for ongoing monitoring of permissible payments abroad to meet their business requirements. Banks have also been advised to provide proper training to relevant staff of all foreign exchange dealing branches (FE Designated Officer) to ensure facilitation to the IT-based exporters/ freelancers and establish a permanent help desk overseen by two officers not below the rank of Vice President to act as lead coordinators on behalf of the bank to resolve the matters pertaining to account opening, retention in accounts, outward remittances, etc. The names and contact details of the lead coordinators and designated officers at the Authorized Dealer branches should be made available on the bank’s website immediately. SBP Directs Banks To Facilitate IT Exporters Without Its Approval