The efforts of Dr. Umar Saif, Caretaker Federal Minister for IT and Telecom, have met a major demand in the IT industry.
The State Bank of Pakistan (SBP) has permitted IT firms to keep 50% of their export revenues in special foreign currency accounts, which has been positively accepted by industry participants.
Previous Permission To IT Industry For Keeping 35% of Export Revenues
Previously, IT companies could only keep 35% of their export revenues in foreign currency accounts.
According to sources, the agenda item “digitization and enhancement of forex retention for IT companies” was added in the Special Investment Facilitation Council (SIFC) meeting.
Following negotiations with the IT industry, State Bank officials informed the SIFC meeting that it had been determined to permit 50% FX retention on IT exports.
According to SIFC instructions, the State Bank of Pakistan would revise foreign exchange regulations to allow IT exporters and corporations to keep 50% of their export revenues instead of 35% in special foreign currency accounts.
SBP Urged To Private Banks
As a result, SBP would urge private banks to credit 50 percent of IT companies’ export revenues into special foreign currency accounts.
According to sources, the Ministry of IT and Telecom played a critical role in the successful discussions between the IT industry and the State Bank.
Dr. Umar Saif, caretaker Federal Minister of Information Technology, addressed the demand of the IT industry before the federal government. Dr. Umar Saif’s efforts resulted in this subject being placed on the SIFC agenda.
Chairman P@SHA Zohaib Khan Welcomed This Move
The IT business, on the other hand, has welcomed this move. In an interview with a private news station, Chairman Pakistan Software Houses Association (PASHA) Zohaib Khan stated that the IT industry’s demand was for authorization to use 100% of the dollar.
“We also wholeheartedly accept 50 percent also the use of dollars,” he added.
SIFC and Dr. Umar Saif’s endeavors for the IT business, he remarked, are praiseworthy. IT firms would attempt to shift their accounts to Pakistan as quickly as possible.
To read our blog on “To boost IT exports, PM Kakar directs to prepare a policy,” click here.