Government aims to increase IT sector exports by $ 10 billion by 2023
The government has developed a concession package for the promotion of the information technology sector, which aims to increase IT sector exports from $1 billion to $10 billion by 2023.
This was stated by Secretary Ministry of Information Technology and Telecommunications (MOIT) Shoaib Ahmed Siddiqui added that all stakeholders are on board and the target is very achievable.
He also endorsed the incentive package and said that the government wants to simplify the sector which is likely to increase the country’s exports manifold.
They are confident that the package will overcome the challenges facing the sector in terms of competitive and regional economies.
Sources added that the concession package includes dealing with issues such as overcharging of IT / ITES companies, lack of standard physical infrastructure and limited domestic opportunities.
The Prime Minister recently chaired a high level meeting on promoting the development of the IT / Telecom Sector and as a result some decisions /instructions are currently being implemented.
The State Bank of Pakistan (SBP) was directed to raise the remittance limit for freelancers to $25,000. The State Bank has also agreed to facilitate the opening of a bank account for freelancers and to ensure all assistance in this regard.
The Prime Minister is committed to promoting a comprehensive Pakistani product and prioritizing Pakistani software products through all ministries /divisions, which will help to grow the IT business.
Special technology zones will be set up in the country to promote the growth of IT / ITES. In this regard, the Public Sector Development Program (PSDP) has raised Rs. Suggested Rs. 6.5 billion have been submitted to the Planning Commission through MOIT.
MOIT has proposed a proposal to address the issues related to double taxation of IT companies by the Prime Minister’s Office. This move will also help remove the barriers to growth of the IT business.
The Prime Minister is proceeding with a summary to declare Islamabad a Knowledge City. The move will promote Islamabad’s international branding as a focus for investment by foreign IT companies.
In addition, the government has already taken steps / measures which include:
- Government exempts IT / ITES from export tax by June, 2025
- IT Startups registered with the Pakistan Software Export Board (PSEB) have income tax, withholding tax and minimum tax exemption of up to three years and tax exemption for venture capital funds by 2024.
- To promote the IT sector and attract global investors, foreign ownership of up to 100% of IT/lTeS have been allowed and there is no restriction on the return of the profits of such foreign investors.
- Through PSEB, the government is facilitating local companies to promote IT services through marketing, subsidies, etc.
- PSEB is focusing on bringing local companies to subscribe to global best practices like ISO certification CMMI. Such a drive not only help to increase efficiency, but also restores / restore the confidence of companies abroad.