KARACHI, Oct 21: The State Bank has relaxed foreign exchange rules enabling the branches of foreign companies or multinationals operating in Pakistan to make payments abroad in foreign currencies on account of utilization of information technology services.

A circular issued by the State Bank says banks can release up to $100,000 or equivalent amount in other foreign currencies to the branches of foreign companies operating in Pakistan to make payments abroad for the IT services they use here (e.g. internet).

Earlier, the banks were supposed to release up to $100,000 or their equivalent in other foreign currencies for the purpose only to those companies that were incorporated in Pakistan.

Bankers say the SBP move would earn appreciation from multinationals operating in the country.