Lahore: The State Bank of Pakistan (SBP) has announced its decision to introduce measures under which local exports will be able to start joint ventures, acquire warehouses, and invest in subsidiaries through funds in their foreign currency accounts – a news source reported on October 23.
At present, the SBP allows exporters to retain 10%-35% of their total export earnings in their foreign currency accounts. Now the central bank intends to allow exporters to spend their funds in other financial avenues.
In addition to using the funds for joint ventures, acquisition of warehouses and investment in subsidiaries, exporters will also be able utilise the funds towards payment of fee/expenses relating to advertisement, promotion, marketing and brand building abroad through a third-party agent or through a company’s own subsidiary/ liaison/ marketing office abroad.
They may also utilise it as subscription fee for participation in foreign exhibitions, fairs and e-commerce platforms for promotion/marketing of company’s products,; payment of foreign consultant’s fee for obtaining services from abroad; refund of payment to foreign tourists on account of cancellation of their intended tours to Pakistan, for which they remitted advance payments to tour operators/organisers in Pakistan.