Pakistan’s IT industry is facing challenges, according to leading exporter Noman Said. He’s urging the government to implement several key measures to address these issues and unlock the industry’s full potential.
One of the main demands is a guaranteed tax-free status for the IT sector for the next ten years, regardless of any changes in government leadership. This stability is seen as crucial for attracting investment and fostering growth.
Mr. Said also highlighted a concerning decline in IT exports. Data from the State Bank of Pakistan reveals a 12.4% month-on-month drop in January 2024, reaching $265 million compared to $303 million in December 2023.
He emphasized the IT sector’s potential to significantly contribute to Pakistan’s economic well-being. Rapidly increasing IT exports can generate much-needed foreign currency inflows, stabilizing the rupee-dollar parity and mitigating inflation. Additionally, this industry boasts a distinct advantage – it doesn’t require the lengthy incubation period typical of other export-oriented industries.
Furthermore, Mr. Said called for greater collaboration and policy consistency between various government bodies. He believes the Ministry of Information Technology (MoITT), Pakistan Software Export Board (PSEB), State Bank of Pakistan (SBP), Federal Board of Revenue (FBR), and Securities and Exchange Commission of Pakistan (SECP) need to work together to create a unified and facilitative policy framework for the IT sector’s growth.
Investment in skills development is also seen as critical. Mr. Said proposed national-level programs spearheaded by MoITT to equip the workforce with in-demand skills such as artificial intelligence, game development, fintech, digital governance, blockchain technologies, and app development.
Finally, the inclusion of private sector representatives in decision-making bodies is advocated. Mr. Said believes incorporating their expertise into the Special Technology Zones Authority (STZA) and provincial IT boards will lead to the creation of more practical and effective policies that address real-world industry needs.
By implementing these recommendations, Pakistan has the opportunity to revitalize its IT sector, address current challenges, and achieve its annual IT export target of $3.5 billion for the current fiscal year.
