ISLAMABAD: The IT and IT-enabled Services (ITeS) export remittances comprising computer services and call center services have surged to $1.5 billion at a growth rate of 44 percent in the first nine months of FY 2020-21 (July-March), compared to $1.053 billion during the same period of FY 2019-20, according to official data available with Business Recorder.

The export remittances from the sector witnessed 58 percent growth and remained $213 million in March 2021 compared $135 million in March 2020.

The government has set a target of $5 billion for export remittances through information technology and IT-enabled services during the next three years.

Federal Minister for IT and Telecommunication Syed Aminul Haque said the government was taking all possible steps to ensure long-term IT industry growth trajectory and to enhance IT industry exports to $5 billion by 2023.

Spokesperson of the ministry told Business Recorder that more than 6,000 Pakistan-based IT companies were providing IT products and services to the entities in over 100 countries.

Strong incentives are being provided to the IT industry, and there are several projects intended to facilitate and assist the IT industry in its growth trajectory, and to ensure continued upward momentum in local and export earnings.

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.

Pakistan was ranked 3rd most popular country for freelancing in the world, and Pakistani IT companies are providing products and services to the world’s largest companies, the official added.

Copyright Business Recorder, 2021