SBP Collaborating MoITT To Address Issue Of IT Industry Retention
SBP directed authorized dealers to swiftly facilitate IT and ITeS exporters, the Ministry of Information Technology and Telecommunication said.
The State Bank of Pakistan (SBP) has been collaborating with the Ministry of Information Technology and Telecommunication (MoITT), the Pakistan Software Export Board (PSEB), and the Pakistan Software Houses Association (P@SHA) to address issues with the IT industry retention and use of foreign currency.
The State Bank of Pakistan (SBP) has directed authorized dealers to swiftly facilitate IT and ITeS exporters, the Ministry of Information Technology and Telecommunication said.
SBP gave instructions to commercial banks and authorized dealers on Monday to help the information technology (IT) sector open foreign currency accounts quickly and make sure that remittances are credited to local currency accounts on schedule.
The change occurred after SBP Governor Jameel Ahmed met on Monday with representatives from PSEB, MoITT, and P@SHA to discuss issues and worries facing the sector. The SBP had issued EPD circular letters on January 13 titled “Exports of Software, Information Technology (IT), and IT Enabled Services (ITeS)” and “Utilization of Funds Held in Exporters’ Special Foreign Currency Account.” But because commercial banks misinterpreted them, the exporters had trouble converting the foreign currency remittances into Pakistani rupees (PKR).
The central bank issued instructions to the authorized dealers on January 27, 2023, to assist the IT and ITeS exporters in quickly opening foreign currency accounts to retain up to 35% of export proceeds after this issue was brought up to the finance minister and SBP governor.
Retention in the IT industry refers to the ability of a company to keep its employees for a long period of time. High retention rates indicate a positive work environment, job satisfaction, and strong benefits. Factors that contribute to retention include good management, competitive compensation, opportunities for career growth, and a positive company culture.
Poor retention rates can lead to high turnover and recruitment costs, decreased productivity, and a negative impact on company morale.