Karachi, In a move to bolster the exports of IT and IT-enabled services, the State Bank of Pakistan (SBP) has introduced measures that increase the retention limit of IT exporters. This includes raising the permissible retention percentage of export proceeds and streamlining the use of Exporters’ Specialized Foreign Currency Accounts (ESFCAs). In addition, a new framework tailored for freelancers promises to simplify banking procedures for this growing sector.

According to a new release by the State Bank of Pakistan, the SBP has elevated the permissible retention limit for IT exporters from 35% to 50% of their export proceeds in the ESFCAs. Furthermore, the bank has removed previously existing bureaucratic hurdles by enabling IT exporters to make payments directly from these accounts, eliminating the need for prior approval from the SBP or associated banks.

Banks have received instructions to assist in issuing debit cards, which will further enable IT exporters to conveniently make online payments using the funds in their ESFCAs.

Adding to the series of facilitating measures, the SBP has rolled out a novel Framework for Freelancers. This initiative is designed to ease the process of opening bank accounts for freelancers, giving them the option to choose between digital and physical methods with minimal documentation. Upon setting up their primary PKR account, the ESFCAs for freelancers will be automatically activated. Freelancers can now maintain either 50% of their export proceeds or an amount up to USD 5,000 per month, whichever value is greater, in their ESFCAs. Like their IT exporter counterparts, freelancers can also make transactions from these accounts without needing approvals from the SBP or any bank.

This strategic move by the SBP is expected to provide a significant boost to Pakistan’s IT sector, creating a more conducive environment for growth and global competitiveness.