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Thursday, February 15, 2024

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

Remittances from the IT sector grew 38.16% from last year to $648.940 million this year, announced IT minister Syed Amir ul Haque

The Minister of IT and Telecommunication Syed Amir ul Haque announced that export remittances from the IT sector and IT-enabled Services (ITeS) computer services and call center services surged to $648.940 million at a growth rate of 38.16 percent during the July-November period of FY 2020-21. Last year the remittances had been $469.713 million.

Lauding the latest export performance of Pakistan’s IT industry, the minister said, “We are taking all possible steps to ensure sustainable growth of Pakistan’s IT industry and ensure close coordination with the IT industry and associated stakeholders.”

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The PSEB registration fee for IT & ITeS companies, including call centers and IT startups, belonging to under-served areas of the country, have been completely waived to boost the growth of the IT industry in the underdeveloped parts of the country and thus may have helped in the growth of the IT sector.

IT sector growth attributed to the government’s incentives

More incentives to the industry included zero income tax on IT, and ITeS exports up till 2025. Tax breaks for the Pakistan Software Export Board (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, are further incentives that helped the industry grow its remittances.

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 This growth has been commendable considering the current global economic challenges that have manifested due to the pandemic. Pakistan’s IT sector was exporting products and services to over 100 countries and counts as the world’s largest entities among its regular clients.

Pakistan’s IT sector was the largest net services export industry in Pakistan’s economy. Managing Director, Pakistan Software Export Board, Osman Nasir, said all possible efforts were being made to increase the remittances inflow to $5 billion from the country’s IT sector by 2023. PSEB worked on major new initiatives in marketing, infrastructure, capital availability, policy and consulting, HR, and business development.            

Efforts are also being taken to extend maximum facilitation to the startups in all important spheres, including access to funding channels. He informed that PSEB was being restructured as a front leading global business development and marketing organization, which would develop the IT industry and human capital behind the borders and generated demand from beyond the borders.

GVS News Desk