Caretaker Federal Minister for Information Technology and Telecommunication, Dr. Umar Saif expressed the hope that the decision to allow IT companies to retain 50 percent of their export proceeds in special foreign currency accounts will increase IT exports to $4 billion.
This groundbreaking move fulfills a longstanding demand of the IT sector and underscores Dr. Saif’s unwavering commitment to the industry’s growth.
Previously, IT companies were permitted to retain only 35 percent of their export proceeds in foreign currency accounts, making this decision a pivotal step toward streamlining financial operations and bolstering the industry’s potential.
The inclusion of “digitization and enhancement of forex retention for IT companies” on the agenda of the Special Investment Facilitation Council (SIFC) meeting marked a significant milestone.
Following the directives of the SIFC, SBP is now set to revise foreign exchange regulations, permitting IT exporters and companies to retain 50 percent of their export proceeds in these specialized foreign currency accounts.
The Ministry of IT and Telecom played a central role in brokering successful negotiations between the IT sector and the State Bank, reinforcing the government’s commitment to fostering a conducive environment for technological innovation.
Dr. Umar Saif’s tireless advocacy for the IT industry bore fruit when he brought the sector’s demands to the federal government’s attention, resulting in its inclusion on the SIFC’s agenda.
This proactive approach has led to a milestone decision that will not only enhance the IT industry’s competitiveness but also provide companies the opportunity to transfer their accounts from abroad to Pakistan.—APP
