KARACHI, July 7: The State Bank has allowed banks to release foreign exchange up to $100,000 per invoice for private sector companies for payments on account of utilization of information technology services and the like.

A circular issued by the SBP's exchange policy department says banks will release foreign exchange to companies incorporated in Pakistan after satisfying themselves that the requests are genuine.

The list of eligible items for which banks can release foreign exchange includes satellite charges, international bandwidth charges, international internet service charges, international private line charges, software licence/maintenance & support fee or proprietary/specialized software, subscription/payments for access to foreign electronic media and database.

"Remittances under the authority of this circular may only be made through a bank designated by the remitters for the purpose under intimation to the exchange policy department of the SBP."

The facility of allowing direct release of foreign exchange by the banks would not be applicable on: remittances by branches/liaison/project offices of foreign companies (other than banks); and remittances by state-run bodies and enterprises.