Hi everyone! I hope you are all doing well. Welcome back to another blog. This article will discuss the topic in detail “Collaboration Between SBP and Stakeholders to Address the Retention of 35% of IT Export Earnings”. In recent years, the Information Technology (IT) industry has become an essential contributor to the Pakistani economy. IT exports have been growing steadily, with the sector generating around $2.1 billion in revenue during the fiscal year 2019-2020. However, despite the industry’s success, Pakistan still faces challenges in retaining a significant portion of its IT export earnings. The State Bank of Pakistan (SBP) has taken steps to collaborate with stakeholders to address this issue. In this article, we will explore the collaboration between the SBP and stakeholders to retain 35% of IT export earnings.
The IT industry has been growing rapidly in Pakistan, with the sector contributing significantly to the country’s economy. According to the Pakistan Software Export Board, the IT industry generated $2.1 billion in revenue during the fiscal year 2019-2020. However, despite the industry’s success, Pakistan still faces challenges in retaining a significant portion of its IT export earnings.
The Pakistan Software Export Board (PSEB) and Pakistan Software Houses Association (P@SHA) will collaborate with representatives from commercial banks under the coordination of the State Bank of Pakistan (SBP) to address banking issues related to the retention of 35 percent of remittances in Foreign Currency Accounts (FCY) accounts. Together, they will work towards finding a resolution that benefits all parties involved. The Federal Minister for Information Technology and Telecommunication Syed Amin Ul Haque chaired a high-level meeting and made the decision.
During the meeting, Tariq Bajwa, who serves as the SAPM for Finance, attended to evaluate the progress made by relevant departments. The forum was briefed by the Member (IT) on the implementation of the prime minister’s directives. Additionally, representatives from SBP, FBR, and PSEB informed the Chair about the issues highlighted by the Ministry of MoITT.
The Minister of Information Technology and the Special Assistant to the Prime Minister have praised the Chairman and team of the Pakistan Software Export Board for their diligent work in executing the Prime Minister’s directives. The State Bank of Pakistan will provide assistance in enabling IT/ITES companies to open foreign currency accounts.
The meeting reached a decision to task the State Bank of Pakistan (SBP) with organizing a session within the next week to involve representatives from commercial banks with teams from the Pakistan Software Export Board (PSEB) and Pakistan Software Houses Association (PASHA) in order to address banking issues related to the retention of 35 percent of remittances in foreign currency (FCY) accounts. The SBP clarified that the policy regarding both the retention and utilization of funds remains fully functional, and IT companies are free to utilize this policy in accordance with their requirements.
The FBR informed us that they are proposing amendments in the upcoming Finance Bill. That has been agreed upon by representatives from FBR, PSEB, and P@SHA. These amendments aim to bring positive changes to the current system.
FOR MORE VISIT OUR OFFICIAL WEBSITE.