Elimination of Restriction for IT Companies to Make Payments from Forex Accounts
Reform ID E046
Reform Description The Restriction for IT Companies to Make Payments from Forex Account has been Eliminated

Before: Exporters of software were not allowed to utilize their own export earnings in Foreign Currency accounts exclusively for payment of expenses incurred by employees travelling abroad to provide business related services. The existing rules only allowed the payment of commission/discount, promotional publicity, import of hardware/software, and foreign consultant’s fee etc.

After: SBP broadened the use of funds by I.T exporters and have allowed to retain a certain portion of their exports proceeds in their special foreign currency accounts and use it for branch office, branding, marketing and traveling expenses.
Sector ICT / IT Companies
Beneficiaries All Businesses Involved in ICT / IT Companies
Jurisdiction/Location The Whole of Pakistan
Department State Bank of Pakistan, ICT, and MoIT&T
Date of Implementation 19-02-2021
Details Difficulty ● Exporters of software were not allowed to utilize their own export earnings in Foreign Currency accounts exclusively for payment of expenses incurred by employees travelling abroad to provide business related services. The existing rules only allowed the payment of commission/discount, promotional publicity, import of hardware/software, and foreign consultant’s fee etc.
Analysis ●  There was a complete consensus among all departments that  the existing rules only allowed the payment of commission/discount, promotional publicity, import of hardware and software, and foreign consultant’s fee etc., which is hindering exporters to expand their business.
Solution ●  SBP allowed retaining a certain portion of their export proceeds in their special foreign currency accounts and using it for branch office, branding and marketing.

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