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Saturday, February 4, 2023
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IT and (ITeS) export remittances surge to $1.5 billion

According to official data, The IT and (ITeS) export remittances have risen to $1.5 billion at a growth rate of 44 percent in the first nine months of FY 2020-21 (July-March)

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Compared to $1.053 billion during the same period of FY 2019-20, The IT and IT-enabled Services (ITeS) export remittances which include computer services and call center services have risen to $1.5 billion at a 44 percent growth rate in the first nine months of FY 2020-21 (July-March).

The export remittances from the IT sector saw a 58 percent growth and stood at $213 million in March 2021 compared $135 million in March 2020.

According to Federal Minister, IT and Telecommunication Syed Aminul Haque, the government was taking every possible measure to ensure long-term IT industry growth trajectory and to increase IT industry exports to $5 billion by 2023.

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

According to sources, Pakistan is providing IT products and services to the entities in over 100 countries.

To maintain the positive growth momentum in local and export earnings, several projects are being initiated for the IT industry. Strong incentives are also being offered to help the IT industry in its growth trajectory.

Read More: IT sector’s remittances grow 38.16% to $648.940 million

These incentives 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 many other incentives.

Efforts are also being made to extend maximum facilitation to the startups in all important spheres, including access to funding channels. PSEB is also being developed as a front leading global business development and marketing organization, which would enhance the IT industry and human capital and generate demand from beyond the borders.

This growth has been commendable considering the current global economic challenges that have manifested due to the pandemic.