The State Bank of Pakistan (SBP) has denied recent reports in some sections of the media that some Google payments are stuck in the central bank, as false and misleading.
“The fact is that to facilitate domestic entities, the SBP specified certain information technology (IT) related services that such entities can procure from abroad for their own use and there per invoice of USD 100,000. can make foreign currency payments up to The bank said in its explanatory note.
“Such services include satellite transponder, international bandwidth/internet/private line services, software license/maintenance/support, and service to use electronic media and databases. Institutions wishing to exercise this option a bank , which is once approved by the SBP. Thereafter, after nomination, such payments can be processed by the nominated bank without any further regulatory approval.”
However, during recent off-site audits, it was observed that apart from using the above mechanism to divert funds for IT related services for their own use, Telcos purchased a large amount of funds for video gaming, entertainment content etc. Part was sending. by its subscribers using airtime under Direct Carrier Billing (DCB).
DCB, in general, is an online mobile payment method, which allows customers to make purchases by paying their mobile phone carrier bill. Telcos were allowing their customers to purchase the above products through airtime and then remit funds abroad which reflected transactions such as payments for IT-related services. Thus, in effect the Telcos were acting as intermediaries/payment collectors by facilitating access to services by their subscribers. Therefore, in view of the violation of foreign exchange regulations, the SBP canceled the bank mandate of the Telcos for such payments. However, to facilitate their legitimate IT payments, Telcos are advised to resubmit their applications through their banks.
If any entity, including a telco, intends to act as an intermediary/payment collector and such arrangement involves remittance of foreign exchange, it shall be required to provide such services under the Foreign Exchange Regulation. To get special permission for, one has to approach State Bank separately through your bank. Act, 1947.
