The State Bank of Pakistan (SBP) has extended the mandatory retention of 35 percent of IT exporters' export proceeds in special foreign currency accounts by June 30, 2023. This facility was originally introduced on January 13, 2023, and was due to expire on March 31, 2023. However, the SBP has decided to extend it for an additional three months in order to further facilitate IT companies and freelancers.
In order to be eligible for this facility, IT exporters must be registered with either the Pakistan Software Export Board (PSEB) or the Pakistan Software Houses Association (P@SHA). They must also be involved in the export of software, information technology (IT) services, or IT-enabled services (ITeS).
The funds that are retained in these special foreign currency accounts can be used for a variety of purposes, including:
- Payment of commission or discount to overseas agents or buyers
- Import of hardware or software
- Payment of foreign consultant's fees
- Promotional publicity
- The SBP has said that it will review the effectiveness of this facility in the coming months and may decide to extend it further.
The extension of this facility is a positive development for the IT sector in Pakistan. It will help to boost exports and attract foreign investment in the sector. It will also help to create jobs and boost economic growth.
The SBP has taken a number of other steps in recent months to support the IT sector. These include:
- Reducing the regulatory burden on IT companies
- Providing financial assistance to IT startups
- Promoting IT exports through trade missions and exhibitions
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