SBP to Work With Stakeholders to Resolve Issue of Retention of 35% IT Export Proceeds

The State Bank of Pakistan (SBP) will coordinate to engage commercial bank representatives with Pakistan Software Export Bard (PSEB) and Pakistan Software Houses Association (P@SHA) to resolve banking matters regarding 35 percent retention of remittances in Foreign Currency Accounts (FCY) accounts. The decision was taken in a high-level meeting on chaired by Federal Minister for Information Technology and Telecommunication Syed Amin Ul Haque. The meeting was also attended by Tariq Bajwa, SAPM for Finance to review the progress by relevant quarters. Member (IT) briefed the forum about progress on the implementation of the prime minister’s directions. Representatives of SBP, FBR, and PSEB apprised the Chair of issues highlighted by Ministry of Information Technology and Telecommunication (MoITT). The IT minister & SAPM appreciated Chairman PSEB and his team’s efforts to implement prime minister’s decisions. The FCY account opening operations for IT/ITES companies will be facilitated by SBP. The meeting decided that SBP will coordinate a session by next week to engage commercial bank representatives with PSEB and PASHA teams to resolve banking matters regarding the 35 percent retention of remittances in FCY accounts. SBP explained that both retention and use of funds under the announced policy are very much intact, hence IT companies can use this policy as per their need. The FBR apprised that agreed amendments between FBR, PSEB, and P@SHA representatives are being proposed in the upcoming Finance Bill.