Pakistan Software Houses Association (P@SHA) has praised Syed Amin Ul Haque, the federal minister of information technology and telecommunications (MoITT), for his unwavering public support of the IT sector.
P@SHA is a strong proponent of asking key government agencies to engage with the sector to make it easier for IT businesses to conduct business.
Both the Pakistan Software Export Board (PSEB) and the Federal Ministry of Information Technology & Telecommunications (MoITT) have previously pushed for the adoption of regulations that are favourable to the sector and the development of a planned tech ecosystem in Pakistan. MoITT has made sincere and focused efforts to win support for the industry’s strategic needs.
The industry has received backing from MoITT and PSEB, but other important stakeholders have fallen short in this regard. In an unprecedented action, the federal minister of IT criticised the government agency for its lack of assistance and cooperation.
“The industry acknowledges the stance of the federal minister for IT about the issues of the IT industry,”
says Zohaib Khan, chairman of P@SHA. It is past time for key parties including the Finance Ministry, FBR, SBP, and SECP to take responsibility for assisting the IT sector. The industry requests the following policy interventions: a tax holiday for five years (which was announced until 2025); hassle-free currency retention; [a] 5% cash reward for IT exporters; and capacity building through the provision of youth with market-driven IT skills in the interest of the entire nation.
As Pakistan struggles with its economic crises, Zohaib Khan continued,
“The only sector that has the ability to stabilise Pakistan’s economy is IT & IT-enabled services. The industry provides an increase in IT exports and the intake of revenue in the form of investments, both of which are essential to Pakistan’s economy, to bridge the current account deficit.”
It is important to remember that in FY2021-22, the IT & ITeS industry’s export revenues were almost $2.6 billion. Additionally, the IT industry earned the largest exports within the services sector and is the only one to have a 77 percent trade surplus.
Although the government ministries are refusing to promote and cooperate with the industry, Prime Minister Shehbaz Sharif has set an export goal for the sector of $15 billion. Policy incentives must be implemented, and barriers to conducting business must be eliminated, in order to meet the export target.
The ease of doing business and capacity-building measures would encourage the industry’s export expansion and business development. More than 600,000 individuals are employed by Pakistan’s IT industry, both formally and as independent contractors. However, policy implementation & continuity must be assured to promote the exports of the IT & ITeS industry and Pakistan’s economic growth. Pakistan must establish itself as a desirable location for technology. It is contradictory to the Prime Minister’s goal of export growth for the appropriate ministries to consistently lack support.
P@SHA has firmly urged the Prime Minister to step into his proper leadership role and ensure coordination and synergy among the relevant ministries and departments to ensure Pakistan’s economic growth by supporting the IT & ITeS sector.
