The Pakistan State Bank on Tuesday allowed software exporters to retain 25 per cent of their export earnings in special foreign currency accounts with banks.
A State Bank circular said software exporters would use such funds exclusively for payment of commission to overseas buyers and to meet other expenses such as promotional publicity, import of hardware or software and consultants fee etc.
It said the software exporters would be allowed to make such expenses without the prior approval of the State Bank.
But it asked the banks to ensure that the 25 per cent export earnings of software exporters retained with them is spent for the specified purposes.
This is something software exporters were looking for all the time this will enable to open liaison offices abroad...and that really would go a long way in boosting our business," said a software exporter.
Earlier this month the State Bank asked banks to provide export finance to software exporters treating their Letters of Credit or confirm orders as collateral.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.