SBP has revised its Foreign Exchange Manual (FEM) to support export-oriented companies, particularly in the IT sector. A circular issued by the Exchange Policy Department of the central bank on Thursday announced the amendments, which aim to help these companies expand internationally and boost the country’s exports.
The revisions include the introduction of a new Export-Oriented IT Companies (EIA) category, the removal of the requirement for prior designation of a bank for exporters utilizing funds from Exporters Special Foreign Currency Accounts (ESFCAs), and permission for IT export companies to acquire interests (percentage of shareholding) in foreign entities. Additionally, the restriction of establishing or acquiring one entity per jurisdiction for IT export companies has been relaxed.
These changes have been incorporated into Para 13, Chapter 20 of the FEM. The central bank has also instructed Authorized Dealers to notify all relevant parties of these developments and ensure meticulous compliance.
