Eyeing $5bn exports target, efforts underway to ensure Pakistan’s IT holistic growth

Lauding the latest export performance of Pakistan’s IT Industry, the Minister for IT & Telecommunication Syed Amin Ul Haque, has said that the initiative for bringing the IT companies from secondary and tertiary cities into the mainstream is well underway for ensuring holistic growth of Pakistan’s IT Industry.

He said that the PSEB registration fee for IT & ITeS companies, including call centers and IT startups, belonging to underserved areas of the country have been completely waived in order to boost growth of IT industry in the under developed parts of the country and thus contribute to organic growth of IT Industry across Pakistan.

The statement comes after the country’s Information Technology & IT enabled Services (ITeS) export remittances comprising of computer services and call center services have surged to US $648.940 million at a growth rate of 38.16% during July-November of FY 2020-21, in comparison to US $469.713 million during July-November of FY 2019-20.

This is the highest growth rate for the FY 2020-21 (July-November), achieved by Pakistan’s IT sector since 2018 when the growth rate for the corresponding period was just 13%.

It’s worth mentioning here that Minister for IT Syed Amin Ul Haque has set a target of $5 billion for export remittances through information technology and IT-enabled Services during the next three years.

“We are taking all possible steps to ensure sustainable growth of Pakistan's IT industry and to ensure close coordination with the IT industry and associated stakeholders” Minister of IT stated.

Incentives to the industry include zero income tax on IT and ITeS exports till June 2025, tax breaks for the PSEB-registered IT start-ups for three years, up to 100 percent foreign ownership of IT and ITeS companies, up to 100 percent repatriation of profits for foreign IT and ITeS investors, tax holiday for venture capital funds till 2024, among other incentives, he added.

Managing Director, Pakistan Software Export Board, Mr. Osman Nasir said that all possible efforts are being made to achieve US$5 billion remittances inflow from the country’s IT sector by Year2023 as per target set by Minister IT Syed Amin Ul Haque.

Efforts are underway to extend maximum facilitation to the startups in all important spheres including access to funding channels. He said that PSEB is being restructured as a front leading global business development and marketing organization, which would help in the development of the IT industry and human capital behind the borders, and generates demand from beyond the borders.