Attention of Authorized Dealers (ADs) is invited to Para 12, Para 36 and Para 40 of Chapter 12 (Exports) of the Foreign Exchange (FE) Manual, which provides general instructions relating to ‘Export of Software’, ‘Export of Services’ and ‘Utilization of funds held in Exporters’ Special Foreign Currency Account (ESFCA)’.
2. In order to encourage the exporters of Software, Information Technology (IT) and IT enabled Services (ITeS) and freelance services to boost their export earnings and bring additional foreign exchange into the country, the retention limit in ESFCAs has been increased from 35% to 50% of the export proceeds and the utilization of the retained funds has been further liberalized. Going forward, such exporters can freely make payments abroad of current account nature from these accounts, without prior approval of SBP.
3. Accordingly, Paras 12 and 36 of Chapter 12 (Exports) have been amended and are attached as Annexure-A. Moreover, Para 40 of Chapter 12 of FEM will not be applicable on the above-mentioned exports.
4. Authorized Dealers are advised to bring the above instructions to the knowledge of all their constituents and ensure meticulous compliance of the above instructions.
Encl: As above