June 09, 2023 (MLN): Pakistan’s IT and telecommunication industry shine with a promising horizon as the government and private sector join forces to create an environment for innovation, entrepreneurship, and digital transformation, as reported by economic survey of Pakistan FY23.
The envisioned turnaround of Pakistan’s economy in the medium to long term is possible by utilizing the potential of IT and Telecom sector.
The initiatives to boost IT industry includes the establishment of special technology zones, the expansion of broadband and 5G networks, the promotion of e-commerce and e-governance platforms, the enhancement of cybersecurity and data protection measures, and the facilitation of foreign investment and collaboration.
Pakistan's IT and Telecommunication industry is one of the fastest growing and most promising sectors in the country, with the potential to contribute significantly to the national economy.
Kearney’s Global Services Location Index (2021) ranked Pakistan as the second most financially attractive location worldwide for offshore outsourcing IT and ITeS.
There are 5,109 IT and ITeS companies registered with Pakistan Software Export Board (PSEB) as of March 2023 representing the exporters.
IT exports during July-March FY2023 reached $1.94 billion compared to $1.95bn during the same period last year.
The IT industry has the highest proportion among all services sector’s exports constituting 35.1% of all services exports.
In the IT and ITeS industry, a trade surplus of $1.72bn (88.6% of total IT export remittances) was achieved during the period July-March FY2023 (an increase of 16.7%) as compared to a trade surplus of $1.47bn for the same period last year.
During July-March FY2023, PSEB has added seven STPs, listed in Table 15.1, to facilitate the IT industry by expanding the basic infrastructure facilities in secondary and tertiary cities of Pakistan.
The economic survey further highlighted that PSEB-registered startups are allowed 100% tax credit including minimum, alternate corporate tax, and final taxes for three years.
The telecom sector remained a significant source of revenue generation for the national exchequer during FY2022 and contributed Rs327bn in the form of general sales tax (GST), withholding tax, regulatory fees, initial and annual license fees, and other taxes.
During July-December FY2023, the telecom sector contributed Rs139bn (Provisional) to the national exchequer.
The government is working on the ‘Digital Pakistan Vision’ to enhance its digital economy footprint, to spur economic prosperity and public empowerment.
These initiatives will enable the IT sector of Pakistan to tap into the global market opportunities as it offers high-quality and competitive solutions to various sectors such as education, health, agriculture, finance, and entertainment.
Copyright Mettis Link News
Posted on:2023-06-09T15:46:50+05:00
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