ISLAMABAD: Pakistan is struggling to boost the country’s information technology exports to $3.5 billion by offering more incentives to local companies, though experts maintain the proposed increase by the end of the next year is still not ambitious enough when compared to other countries.
According to data compiled by the information technology ministry, Pakistan registered a 39.26 percent increase in IT exports amounting to $830 million during the first four months of the current fiscal year.
The government incentives to over 3,000 active information technology and information technology-enabled services include 100 percent equity ownership along with repatriation of capital and dividends and income tax credit for exports until June 2025.
“We will surpass the $3.5 billion IT exports target by December 2022,” the country’s information technology minister Aminul Haq said in a statement.
However, experts maintained the target was “very low” while highlighting the need to train the youth to tap global information technology opportunities.
“We have a young tech-savvy population that is exploring opportunities on its own and exporting IT products and services to earn foreign exchange,” Baqar Jafri, economist and chief executive officer of Investors Lounge, told Arab News.
He said Pakistan was mainly exporting programming and integration services, adding that a major portion of the foreign exchange from technology exports came from recurring maintenance and update payments of these services.
“The State Bank of Pakistan has also improved its laws to allow capital inflow in Pakistan in the technology sector, especially the startups since they ultimately contribute to the overall export growth,” he said.
Jafri said the government was also facilitating tech companies to participate in international exhibitions and platforms to attract potential investors and customers who might be interested in their products and services.
“Still there is a need to introduce more policy reforms and an international payment gateway to facilitate the exporters, especially freelancers, to boost the growth,” he added.
