Software Companies can retain 35 percent forex earnings | Pakistan Press Foundation (PPF)

Paksitan Press Foundtion

Software Companies can retain 35 percent forex earnings

KARACHI- The State Bank of Pakistan has increased the limit for retaining foreign exchange earnings by software houses and companies.

The State Bank of Pakistan (SBP) has issued a circular increasing the limit from 25 percent to 35 percent. Earlier, the software houses and companies were allowed to retain 25 percent of their export earnings in special foreign currency accounts with the authorised dealers for payment of commission to overseas buyers and to meet other expenses such as promotional publicity, import of hardware and software, foreign consultants fee, etc.

The SBP has taken the measure to encourage the software industry as part of the government policy, which wants to earn $ 3 billion through exports of software products by 2003.

About currently working in the country but the exports last year amounted to about $ 20 million, and this year $ 30 million is expected.

However, the automation in the banking sector, specially for the development of e-commerce, is highly discouraging. Even the foreign banks who laid down the e-commerce policy have yet not opened a single account. The main reason surprisingly is that the top foreign banks did not print even the forms for opening of the e-commerce account.

This was also astonishing that the banks have even not prepared for the opening of merchant accounts and the forms are not available.

People who want to open these accounts are told that the forms are under preparation or being printed. More than two months have gone since the announce merit of the IT policy but the progress is highly discouraging and this is basically the fault of the banks, one of the businessmen said.
Source: Business Recorder