35pc retention of remittances in FCY accounts: SBP to coordinate to help resolve banking matters

ISLAMABAD: The State Bank of Pakistan (SBP) will coordinate to engage commercial bank representatives with the Pakistan Software Export Board (PSEB) and the Pakistan Software Houses Association (P@SHA) to resolve banking matters regarding 35 percent retention of remittances in Foreign Currency (FCY) accounts.

The decision was taken in a high-level meeting on status update on “Prime Minister’s directions: Strategy Roadmap – ICT Exports” chaired by Federal Minister for IT and Telecommunication Syed Aminul 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 the SBP, the FBR, and the HEC briefed the chair about issues highlighted by the MOITT.

Federal IT Minister and SAPM appreciated the chairman HEC and his team’s efforts to implement the prime minister’s decisions. The FCY account opening operations for the IT/ ITES companies will be facilitated by the SBP.

The meeting decided that the SBP will coordinate a session by next week to engage commercial bank representatives with the PSEB and the PASHA teams to resolve banking matters regarding 35 per cent retention of remittances in the FCY accounts.

The SBP explained that both retention and use of funds under the announced policy are very much intact; hence, the IT companies can use this policy as per their need.

The FBR apprised that agreed amendments between the FBR, the PSEB, and PASHA are being proposed in the upcoming Finance Bill.

Copyright Business Recorder, 2023