On Tuesday, the government addressed long-standing difficulties and authorised huge incentives for the information and communications sector.
The breakthrough was struck when Syed Amin ul Haque, the federal Minister of Information Technology and Telecom (IT&T), met with Shaukat Tarin, the federal Minister of Finance.
“I am glad to inform our sector that the Finance Minister has approved a fund to pay Cash Rewards to IT/ITeS firms against the trade excess of their exports of products and services from Pakistan,” Minister Amin ul Haque told ProPakistani. P@SHA had been requesting this for a long time.”
Every year, 1% of the IT/ITeS industry’s annual export remittances will be provided to the PSEB for HR skills development, IT company capacity building, branding/marketing and business growth, and the establishment of software technology parks around Pakistan, according to him.
While speaking about the IT industry’s tax issues, the minister thanked Minister Tarin for agreeing to organise a high-level, high-powered dispute resolution group to resolve any tax-related concerns in the IT/ITeS industry quickly.
He claimed that the IT industry’s long-standing demand has been met, and that the FBR will amend and expand the tax definition of the IT/ITeS industry in cooperation with the IT industry to assure coverage of all IT and ITeS sub-sectors, as directed by the Minister of Finance.
He also expressed gratitude to the Minister of Finance for agreeing to take steps to help foreign-owned enterprises operating in Pakistan with outbound remittances, and to Prime Minister’s Advisor Razak Dawood for supporting the Ministry of IT&T’s suggestions.
Minister Tarin had given Minister Amin Ul Haque orders for resolving profit repatriation concerns for global technology companies, according to Minister Amin Ul Haque.
“These initiatives will assist in attracting FDI to Pakistan’s tech sector, enabling high-wage employment creation, and increasing export revenue,” he stated.
Steps for Special Foreign Currency Accounts were also agreed upon today to make it easier for the IT/ITeS industry, entrepreneurs, and freelancers to open foreign currency accounts under the FCA framework.