KARACHI: The State Bank of Pakistan (SBP) has asked the Pakistan Cricket Board (PCB) to devise a code of ethics for its franchises, obligating them to abide by the laws when selecting international sponsors.
The SBP in a letter to the PCB has also expressed concern that partnership with some of foreign companies for the PSL may result in outflow of foreign exchange reserves from the country.
According to the SBP, it would felicitate the PCB on successfully organising PSL Season-8 as such events not only encourage the sporting activities in Pakistan but also uplift the image of the country, internationally.
However, the SBP said that it has observed the PCB has engaged Best Fintech Investment Coin (BFIC) as “Official Technology Partner” of PSL Season-8.
“BFIC is a crypto currency and in terms of SBP’s BPRD Circular No 03 dated April 06, 2018, all Banks/DFIS/ Microfinance Banks and Payment System Operators/ Payment Service Providers have been prohibited from dealing in/promoting virtual currencies,” it added.
Therefore, promoting a crypto currency through the event of PSL-8 would not only contradict the SBP’s stance but would also entice the viewers in Pakistan to enter into the prohibited domain of crypto/virtual currencies.
Similarly, the SBP has also observed that a prominent franchise of PSL-8 namely Karachi Kings has signed 1XBAT as Titanium Sponsor. The 1XBAT appears to be a surrogate brand of a sports betting website i.e.1XBET which allows the users to bet on a wide variety of popular sports such as cricket, football, basketball, volleyball etc.
Apparently, both these websites/domains are foreign controlled and thus any usage of their services by resident Pakistanis would result in outflow of precious foreign exchange of the country.
Since, neither these entities, nor PCB has obtained any permission from SBP to take out of Pakistan any money earned by them from resident Pakistanis, any transfer of funds from their operations in Pakistan will be in violation of the Foreign Exchange Regulations Act, 1947, the SBP mentioned.
Copyright Business Recorder, 2023
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