In a move to facilitate IT sector growth, the SBP has allowed export-oriented IT companies to acquire shares in foreign entities and establish overseas offices. These companies can now use funds from their Exporters Special Foreign Currency Accounts (ESFCAs) for these investments without prior approval.
Previously stringent rules, such as the requirement of a designated bank and limitations on the number of entities per jurisdiction, have been relaxed for the IT sector. The SBP has also simplified the process for obtaining necessary permissions.
To encourage IT exports, the central bank has permitted companies to invest up to 80% of their equity in foreign entities. However, companies without export history or insufficient funds in their ESFCAs will still require prior approval for investments exceeding $100,000.
The SBP has urged banks to notify their clients about these changes and ensure compliance with the new regulations.
By streamlining investment procedures, the SBP hopes to empower IT companies to expand their global footprint and contribute significantly to Pakistan’s export earnings.
