SBP directs banks to classify remittances received against IT services

State Bank of Pakistan (SBP) on Thursday has instructed banks to classify receipts of foreign remittances under computer and information services and report them under proper codes.

The SBP said that banks should ensure full compliance with SBP instructions in classifying the foreign exchange inflows and outflows under proper codes in International Transaction Reporting System (ITRS). Non-compliance of these instructions adversely impacts the accuracy of statistics compiled on the basis of ITRS for policy making of various sectors of the economy, the central bank stated.

SBP noted some banks cover IT remittances under non-IT codes such as personal remittances, expenses, etc. They (banks) also report remittances of IT services of freelancer under their personal remittances instead of the specified IT related codes in the foreign exchange return code guide, the SBP. It also directed the banks to identify and classify inflows on account of computer and information services under proper codes in ITRS.

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