As
you are already aware, the Government is strongly committed
towards promotion of information technology as also towards
its export.
In this context several instructions to promote financing
of software exports by banks have been issued by State Bank.
It may be added that in terms of instructions contained
in BPRD Circular No.5 dated 3rd March, 1997, software exports
have already been declared an eligible item under the Export
Finance Scheme.
2.
The recent expansion in IT enabled services worldwide
(in 2000 the volume was $ 142 billion) provides Pakistan an
opportunity to capture some share of this market.
Instances have been brought to our notice that banks
are reluctant to extend financing to IT enabled services.
Under these services, business houses / enterprises
established abroad outsource their business to some overseas
software houses which in turn provides a variety of IT enabled
services to such business house / enterprise.
These services are listed in Annexure-I.
In other words, IT enabled services would cover such
type of software remote services extended by Pakistani exporters
/ software houses, for and on behalf of an overseas business
house, where information is created, disseminated, processed
or stored for commercial purposes that can create employment
in the country and is used for exports.
3.
It is, therefore, clarified that all IT
enabled software remote services shall be eligible
for export
financing
under the Export Finance Scheme in the same manner
as software exports. IT Exporters desirous of availing financing
facility from their banks shall have to produce a valid Contract
executed with their foreign buyer or export letter of credit
established by the banks evidencing export or rendering of
IT enabled services against which export proceeds in foreign
currency will be realized through normal banking channels.
SBP shall provide refinance in all such cases as per
usual terms and conditions contained in BPRD Circular Letter
No.23 dated October 20, 1998.
Please acknowledge receipt.
Click
here to see the Enclosure.
|