SBP asked to implement faceless digital payment system to boost IT exports

 

SBP asked to implement faceless digital payment system to boost IT exports

The IT industry has called on the central bank to implement a faceless banking system for outward remittances to export-oriented companies and freelancers, particularly in the context of the 50 percent foreign exchange retention accounts.

A delegation of IT companies, led by Chairman P@SHA Zohaib Khan and representatives of freelancers, including Tufail Ahmed Khan, CEO and President of the Pakistan Freelancers Association, held discussions with Governor State Bank of Pakistan (SBP) Jameel Ahmed and senior leadership.

 

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The IT companies sought the support of the banking regulator in introducing online internet banking for outward repatriation, aiming to streamline the business transaction process, as opposed to the current practice of visiting dedicated branches, which is time-consuming.

During the meeting, the P@SHA delegation emphasized the issuance of corporate debit cards by banks to the IT industry for the utilization of 50% of export proceeds in Exporters Specialized Foreign Currency Accounts.

Governor Jameel Ahmed assured the delegation that the central bank has instructed commercial banks to issue corporate debit cards to IT companies. He further pledged that two to three banks would commence issuing corporate debit cards to IT companies within a month.

 

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Chairman P@SHA Zohaib Ahmed Khan stated that the IT industry's request would be accommodated in the near future. He emphasized that the 50 percent forex retention accounts' facility would only be optimally utilized if digital banking systems are streamlined, facilitating foreign exchange inflows through IT services exports.

Tufail Ahmed Khan of PAFLA urged the Governor SBP to instruct more commercial banks to provide account facilities to freelancers, including those in small cities. This, he argued, would encourage freelancers to work for foreign clients, attracting valuable foreign exchange.

Chairman P@SHA Zohaib Khan, in discussions with ProPakistani, stressed the importance of a faceless digital payment system for the IT industry to boost IT exports. Facilitating the IT industry should eliminate the need for physical visits to bank branches, allowing IT companies to make payments from their ESFCAs accounts without explicit approval from the SBP or commercial banks.

 

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The central bank's leadership assured the delegation of forthcoming directives to commercial banks to promote this facility. Additionally, they committed to ongoing communication with all stakeholders for constructive feedback and establishing help desks to enhance communication, educate IT companies about SBP's forex retention policies, and provide a centralized platform for addressing concerns and seeking assistance with payment-related matters.

Source: Pro Pakistani

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