KARACHI – The State Bank of Pakistan (SBP) has rejected media reports as “baseless and misleading” about holding certain payments to Google.
The response from the central bank comes after reports surfaced that Google Play Store services will not be available to Pakistani users from December 1 as the SBP blocked $34 million in payments to the international service providers by suspending direct carrier billing (DCB) mechanism.
Later, Information Technology and Telecommunication Minister Syed Aminul Haque clarified that free Google Play Store services will continue to available to the Pakistani users. He also vowed to take up the matter with the Ministry of Finance to revert the decision of suspending payments to the international providers.
In a official statement, the SBP strongly refuted all such assertions and also explained that it has taken some steps to facilitate the domestic entities.
“The fact is that in order to facilitate the domestic entities, SBP specified certain Information Technology (IT) related services, which such entities can acquire from abroad for their own use and make foreign exchange payments there against up to USD 100,000 per invoice”.
Such services include, Satellite Transponder, International Bandwidth/ Internet/ Private Line Services, Software License/Maintenance/Support, and service to use electronic media and databases, it said.
Entities desirous of utilizing this option designate a bank, which is approved by SBP one time. Subsequently, after designation, such payments can be processed through the designated bank, without any further regulatory approval, the SBP explained.
However, during recent off-site reviews, it was observed that in addition to utilizing the aforesaid mechanism to remit funds for IT related services for their own use, Telcos were remitting bulk of the funds for video gaming, entertainment content, etc. purchased by their customers using airtime, under Direct Carrier Billing (DCB).
DCB is, in general, an online mobile payment method, which allows users to make purchases by charging payments to their mobile phone carrier bill.
The SBP highlighted that the Telcos were allowing their customers to purchase the products through airtime and then remitting funds abroad reflecting such transactions as payments for acquisition of IT related services.
Thus, in effect the Telcos were acting as intermediaries/ payment aggregators by facilitating acquisition of services by their subscribers.
Therefore, in view of the violation of foreign exchange regulations, SBP revoked the designation of banks of Telcos for such payments.
However, to facilitate their legitimate IT related payments, Telcos have been advised through their banks to resubmit their requests.
If any entity, including a telco, intends to operate as an intermediary/payment aggregator and such arrangement involves outflow of foreign exchange, it has to approach SBP, separately through its bank, for seeking special permission for providing such services under the Foreign Exchange Regulation Act, 1947.
Sajal to perform leading role in ‘Umrao Jaan Ada’ web series
Security forces kill one terrorist in North Waziristan IBO
Shahid Afridi surprised over Fawad’s removal from Test team
‘We’re exploring legal response,' Bilawal reacts to Imran’s accusations
‘The law of the jungle now prevails,’ Imran reacts to treatment of Fawad Chaudhary
Video showing Memphis police officers beating Tyre Nichols goes vira
Winter activity and political turmoil!
Government, opposition and public!
Present regime and dengue!
The repetition of history and the hidden sciences!
Whispers, rumors and rulers' narrative!
بھارت کر دو لڑاکا طیارے آ پس میں ٹکرا کر تباہ
فواد چودھری کی اہلیہ نے پولیس پر توہین عدالت کا الزام لگادیا
فواد چودھری کس حال میں تھے؟کمرہ عدالت میں آبدیدہ،حبا چودھری نے سب بتا دیا | Face To Face | GNN
مریم نوا زکا لندن پلان بے نقاب ،نواز شریف واپس کیوں نہ آئے | Tahir Malik Reveal Inside News | Vlog
کپتان کا چیف کو تشویشناک خط،الیکشن کی تاریخ اسٹیبلشمنٹ دیگی ؟ | Samina Pasha Vlog | GNN
اگر عزت کروانی ہے تو عمل سے کروا ئیں ڈنڈے کے زور پر نہیں، حماد اظہر کا تہلکہ خیز بیان
Pakistan 2 days ago
Parvez Elahi becomes PML-Q's president
Pakistan 1 day ago
Court approves 14-day judicial remand of PTI's Fawad
Technology 10 hours ago
Intel's 'historic collapse' takes away $8 billion from market value
Pakistan 1 day ago
Court quashes money laundering case against Jahangir Tareen, his son
World 1 day ago
Denmark calls for mandatory military service for women
Business 1 day ago
Gold price jumps by Rs4900 per tola in Pakistan
Pakistan 19 hours ago
Govt determined to legislate for rights of domestic workers: Azam Nazeer
Pakistan 1 day ago
'Zardari gave stolen money to terrorist organization for my life,' says Imran Khan