KARACHI: The State Bank of Pakistan (SBP) has broadened the purposes for which the funds (exports proceeds) retained in the Special Foreign Currency Accounts (SFCAs) by the exporters.
Exporters of goods and services, including IT-based services are allowed to retain a certain portion of their exports proceeds in their SFCAs. The fund from these accounts, however, could be utilised for specified purposes only.
“Banks are allowed to make payment from the accounts for a number of new purposes in addition to existing ones,” it added. However, there is no change in the percentage of export proceeds allowed to exporters for retention in these accounts.
Exporters will be able to use SFCAs to make payments abroad for a number of additional purposes including advertisement, promotion, marketing, brand building etc abroad; subscription fee for participation in foreign exhibitions and fairs; payment for foreign consultant’s fee; travel expenses abroad; warehousing services, insurance expenses and shelf space expenses aboard; lab testing charges; audit/inspection/certification charges; logistics charges; refund of advance payment received against goods or services; payments for registration of patents, copyrights, drug registration, licence fee etc.
Published in Dawn, February 20th, 2021