ISLAMABAD: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb here on Friday underscored the IT sector’s critical role as a rapidly growing industry contributing to Pakistan’s economic growth.
“The IT sector has the potential to be a cornerstone of foreign exchange generation through exports remittances. A collaborative approach, consistent policies, and targeted reforms are essential to unleash its full potential and repatriation of foreign earnings,” he stated while chairing a high-level meeting of the Prime Minister’s Committee on IT Export Remittances.
The meeting was convened to explore ways for boosting the flow of IT export remittances, which are crucial for Pakistan’s economic growth and digital economy, said a press release issued by finance ministry.
The meeting was attended by Minister of State for IT & Telecom Ms. Shaza Fatima Khawaja; Advisor to the Finance Minister, Khurram Schehzad; Chairman FBR; Governor SBP; CEO Pakistan Software Export Board (PSEB); Secretary and Special Secretary IT & Telecom; Member IT & Telecom; and senior officials from the Finance Division.
The meeting highlighted the sector’s opportunities and challenges, focusing on improving the ease of capital movement to boost IT export remittances.
Participants noted that while IT exports are steadily increasing, a substantial portion of revenue remains unremitted. Discussions emphasized the need for simplified procedures, consistent tax exemptions for freelancers, and addressing issues related to remote workers classification and small IT firms to create a more favorable environment for IT businesses to remit their earnings back into the country.
It was noted that Pakistan is home to 2.32 million freelancers, contributing 15% of IT exports, yet only 38,000 hold bank accounts.
While 500 new accounts are being opened weekly, as par SBP data, retaining these account holders and encouraging others to follow the course is of crucial importance.
The Governor SBP updated the committee on measures that have been taken to address these challenges, including streamlining account opening procedures, awareness campaigns, improving complaint resolution mechanisms and prioritizing the IT sector in banking frameworks.
Participants also explored leveraging the Roshan Digital Account to facilitate international remittances for IT companies and freelancers. The discussion stressed the urgent need for access to global payment gateways like PayPal and creation of similar payment solutions at home to empower IT professionals and freelancers and enhance Pakistan’s global competitiveness.
To ensure data-driven discussion and effective policymaking, it was decided to form a working group comprising representatives from FBR, SBP, the IT Ministry, P@SHA, and the Freelancers Association. The group will focus on harmonizing data, identifying significant issues, simplifying processes, enhancing transparency, and ensuring continuity of progress made by SBP and other stakeholders.
The Finance Minister reaffirmed the government’s commitment to fostering the IT sector as a vital contributor to the economy. He urged all stakeholders to work collectively to overcome challenges, promote IT exports, and establish Pakistan as a competitive player in the global IT industry.
