IT exports surge: SBP urged to make financial regulations more favourable

ISLAMABAD: The Ministry of Information Technology and Telecommunications has recommended to the State Bank of Pakistan (SBP) for making financial regulations more favorable to increase IT exports and attract investment in the sector. This was revealed by Secretary IT Shoaib Ahmad Siddiqui, while talking to Business Recorder, here on Wednesday. He further said that the SBP had already granted too many facilities to the IT exporters, but the later lacked knowledge about those steps.

Siddiqui said the Ministry of IT and Telecommunications and the Pakistan Software Export Board (PSEB), in conjunction with the Industry Association (P@SHA) and State Bank of Pakistan (SBP), organised a webinar to educate IT industry on the SBP initiatives/schemes for IT/ITeS exporters, to discuss the SBP-related industry matters and to solicit recommendations for a smooth running environment for IT companies with regards to financial transfers.

Secretary IT Shoaib Ahmad Siddiqui, while addressing the webinar, stated that IT industry's stellar growth was the result of efforts by Pakistani IT companies to maintain and grow their business despite severe global economic downturn in key markets such as North America. It shows that Pakistan's IT industry is resilient to headwinds, and has a strong IT industry eco system that has come of age.

He also applauded that fiscal year 2019-2020 (July 2019 to June 2020) had been a great year for IT and ITeS export remittances. A record US $1.231 billion has been recorded in IT and ITeS export remittances at a growth rate of 23.71 percent as compared to the fiscal year 2018-2019.

Another reason for the industry growth is the consistent efforts by the Ministry of Information Technology and Telecommunication, and the Pakistan Software Export Board to get IT companies to remit higher level of earnings to Pakistan.

The MoITT and the PSEB have also been working to get companies to report remittances in correct State Bank of Pakistan codes in order to ensure accuracy for determining Pakistan's IT exports.

The webinar was attended by a cross section of IT companies. The secretary IT directed the PSEB to hold regular webinars to inform the IT industry on government initiatives, to discuss matters of importance to the IT industry and to solicit industry input.

Copyright Business Recorder, 2020