Finance Minister vows to foster IT sector as vital contributor to economy
ISLAMABAD: Finance Minister Senator Muhammad Aurangzeb emphasizes that a collaborative strategy, consistent policies, and targeted reforms are crucial for unlocking the full potential of the Information Technology sector.
He presided over a high-level meeting of the Prime Minister’s Committee on IT Export Remittances in Islamabad today, aimed at identifying strategies to enhance IT export remittance inflows.GITEX Global 2024 in Dubai.Pakistan Declared Tech Destination of the Year. P@SHA
The Minister highlighted the pivotal role of the IT sector as a fast-expanding industry driving Pakistan’s economic progress.
He stated that the IT industry holds immense promise as a key contributor to foreign exchange earnings through export remittances.
The meeting discussed both opportunities and challenges in the sector, focusing on facilitating smoother capital movement to strengthen IT export remittances.
It was noted that while IT exports are steadily rising, a significant portion of earnings remains outside the formal remittance system.
The discussion underscored the importance of simplified processes, consistent tax incentives for freelancers, and resolving issues related to the classification of remote workers and smaller IT firms to foster a more supportive business environment.
The meeting highlighted that Pakistan hosts 2.32 million freelancers, contributing 15% of IT exports, yet only 38,000 freelancers have formal bank accounts.
It was also shared that, according to the State Bank of Pakistan (SBP), 500 new accounts are being opened weekly. Retaining these account holders and encouraging more freelancers to adopt formal banking channels is critical.
The Governor of the State Bank of Pakistan briefed the attendees on measures being implemented to address these issues, including streamlining the account opening process, launching awareness initiatives, and enhancing mechanisms for resolving complaints.
The Finance Minister reiterated the government’s dedication to promoting the IT sector as a cornerstone of the national economy.
He called on all stakeholders to work together to address challenges, enhance IT export growth, and position Pakistan as a competitive force in the global IT industry.
