KARACHI: The State Bank of Pakistan (SBP) is considering an increase in the scope of utilisation of exporters’ special foreign currency retention account by allowing additional payments, said industry sources on Thursday.

The retention would be allowed for payment of fee or expenses related to advertisement, promotion, marketing, brand building etc. of products abroad through third party agent or through company’s own subsidiary, liaison or marketing office abroad.

Utilisation could be possible for payments of the subscription fee for participation in foreign exhibitions, fairs, e-commerce platforms for promotion and marketing of company’s products.

Exporters would also be able to make payments of foreign consultants’ fee for obtaining services from abroad, hotel booking and other travel expenses abroad, in lieu of official visits of company’s employees.

The changes would also allow payment for third party warehousing services and shelf expenses abroad, investments in subsidiaries and joint ventures.

The utilisation of retention would also be possible for withdrawal of foreign currency in cash to the extent of travel abroad including refund of payment to foreign tourists on account of cancellation of their intended tours.

At present, exporters of goods are allowed to retain up to 10 per cent in such account to meet their promotional or marketing, commission and other related expenses abroad.

Published in Dawn, October 23rd, 2020