In recent times, many countries around the world witnessed an IT boom which has contributed significantly to their respective economies. The most obvious example is India. So in this regard, Prime Minister of Pakistan, Imran Khan has announced the establishment of the Pakistan Technology Startup Fund, which will provide seed funding to around 50 startups each year. During a meeting on Tuesday, the prime minister said that the country’s information technology sector and tech-savvy young people can be used to cover the huge current account deficit.
PM Imran Announces the Establishment of Pakistan Technology Startup Fund
He said that the government is giving IT/ITeS companies and freelancers registered with the Pakistan Software Export Bureau (PSEB) a tax break so that they can get 100% of their money. This is to encourage investment in the IT sector and help the country to get rid of its economic woes.
There could be a big rise in IT exports in the next few years, the prime minister said.
He also talked about how important it was to help the IT industry grow by making it easier for them to do business and giving them the best incentives in the world. He came up with a plan to help the IT industry grow.
There should be Special Technology Zones (STZs) set up quickly in the federal and all provincial capitals to make cities hubs for IT and technology innovation and investment in the first phase of this project, the prime minister said.
Furthermore, he said that parts of the Capital Development Authority (CDA) in Islamabad will become Special Technology Zones (STZs) so that IT businesses and freelancers can get help from the Special Technology Zones Authority (STZA).
The premier also told the government to make changes to the foreign exchange and income tax policies in order to help IT start-ups. These reforms include the launch of Roshan Digital IT Accounts (RIDA) by the State Bank of Pakistan (SBP), which will allow freelancers and IT businesses to keep 100% of their foreign income in foreign currency with no restrictions on how they can move it around. The FBR will also end double taxation of the IT sector and allow venture funding into startups to be tax-free.
The prime minister said that IT Startups should get funding from both inside and outside the country. This would help create jobs and bring in money.