PM’s Committee Takes New Measures to Facilitate IT Exports and Freelancers

The Prime Minister’s Committee on IT Export Remittances has decided to form two sub-working groups focused on taxation and banking. These groups aim to remove key barriers and streamline remittance processes for IT exporters and freelancers. The government seeks to increase IT export revenues from $3.2 billion in FY 2024 to $4.2 billion in FY 2025. The development came during a meeting at the finance division chaired by Senator Muhammad Aurangzeb, the Federal Minister for Finance and Revenue. The session reviewed initial findings from the working group and outlined steps to enhance IT export remittances.

Freelancer Contribution and Banking Challenges

Pakistan is home to 2.32 million freelancers, contributing 15% to its IT exports. Despite their contribution, only 38,000 freelancers currently hold bank accounts, however, the State Bank of Pakistan (SBP) data shows an improvement with approximately 500 new accounts being opened weekly. The committee stressed the need to retain these account holders while encouraging others to join the formal banking system. Moreover, the initiatives discussed during the meeting included simplified account opening procedures, awareness campaigns, and better complaint resolution mechanisms. These measures aim to address the hurdles faced by freelancers in managing their remittances effectively.

IT Export Growth and Economic Trends

The Finance Minister acknowledged the role of currency stability in enhancing remittance inflows. He emphasized the need for consistent policies and countering misconceptions about restrictions on financial operations. The government clarified that companies face no restrictions in transferring money in or out of the country. Therefore, bridging these perception gaps through targeted awareness campaigns remains a priority.

Pakistan’s IT export remittances grew by 28% in the first half of FY 2024-25, reaching $1.864 billion compared to $1.456 billion in the same period last year. Moreover, in December 2024 alone, the country recorded a 15% year-on-year growth, with remittances rising to $348 million compared to $303 million in December 2023. On a month-on-month basis, remittances increased by 12%, up from $310 million in November 2024.

The sector achieved record-high export remittances of $3.223 billion in FY 2023-24, a 24% increase compared to $2.596 billion in FY 2022-23. However, officials acknowledged that a significant portion of IT export revenue remains unremitted.

Proposed Measures for IT Sector Development

The committee proposed several measures to improve IT sector growth, including performance-based incentives for companies. In addition, leveraging tools such as Roshan Digital Accounts and creating domestic payment solutions for global remittance facilitation were highlighted as critical steps. The inclusion of the Pakistan Banking Association in the working group’s scope was also recommended to strengthen collaboration.

The participants of the meeting decided that the sub-working groups on taxation and banking would present a consolidated report at the next meeting. The final comprehensive report is expected to be presented to the Prime Minister by March 2025.

Government’s Vision for IT Growth

The Finance Minister reiterated the government’s commitment to improving Pakistan’s IT exports. He urged stakeholders to address challenges collectively and position Pakistan as a leading global IT exporter. The meeting was attended by the Minister of State for IT & Telecom Shaza Fatima Khawaja, Secretary IT, Special Secretary IT, CEO of the Pakistan Software Export Board (PSEB), and other senior officials.

Our Take

The government’s initiatives reflect a strong intent to boost IT exports and freelancer contributions, however, persistent challenges remain. The gap between the number of freelancers and those engaged in formal banking indicates a need for more robust engagement strategies. In addition, simplified processes and incentives are vital, but long-term success will depend on effective implementation and maintaining policy consistency. Without addressing these structural issues, achieving the ambitious $4.2 billion export target may prove challenging.

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Pakistan’s IT Exports Surge by 39% YoY in October 2024