Pakistan Focuses on Boosting IT Export Remittances

In a recent development, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired a meeting of the Prime Minister’s Committee on IT Export Remittances. During the meeting, he underscored the pivotal role of Pakistan’s IT sector as a motorist of economic growth. According to him, targeted reforms, consistent policies, and collaborative efforts are critical to unlock the IT sector’s full potential and ensure the repatriation of foreign earnings.

IT Export Remittances: A Key Pillar for Pakistan’s Economic Revival

The IT sector is the cornerstone for yielding foreign exchange. Moreover, it contributes significantly to Pakistan’s digital economy. However, a substantial portion of revenue always remains outside Pakistan despite steadily increasing IT exports. To address this, the meeting focused on streamlining procedures, ensuring tax exemptions for freelancers, and resolving challenges faced by remote workers and small IT firms.

An important concern raised during the meeting was the low percentage of freelancers with bank accounts. As per the reports, 2.32 million freelancers contribute 15% of IT exports, but only 38,000 currently hold accounts. Furthermore, 500 new accounts are opened weekly. So, it is very important to retain these account holders, and onboard others for fostering growth.

State Bank of Pakistan (SBP) Governor Jameel Ahmad suggested significant measures to address these challenges, including streamlined account opening, improved awareness campaigns, enhanced complaint mechanisms, and prioritizing IT within banking frameworks. Further, leveraging the Roshan Digital Account (RDA) to simplify remittances and securing global payment gateways like PayPal were emphasized as transformative steps for IT professionals and freelancers.

Sources claim that a working group comprising representatives from FBR, SBP, IT ministry, P@SHA, and Freelancers Association will handle data harmonization, process simplification, and transparency. The government seems committed to positioning Pakistan as a global IT powerhouse, calling for collective action to overcome challenges and improve competitiveness. The future of Pakistan’s IT sector looks promising if stakeholders stay aligned. Moreover, the reforms in progress will contribute significantly to the nation’s economy and global standing.

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