PSEB Faces Rs. 39.67 Million Revenue Loss Over IT Company Registration Lapses

The Auditor General of Pakistan uncovered a staggering revenue loss of Rs. 39.67 million for the Pakistan Software Export Board (PSEB) due to widespread lapses in membership renewals by registered IT companies. According to the audit report, 3,967 out of 7,574 registered companies failed to renew their registrations, greatly impacting the board’s revenue stream. PSEB faced criticism over lapses in IT company registration policy.

Under PSEB’s policy, IT companies, call centers, and freelancers must renew their memberships every one to five years. The fees range from Rs. 10,000 to Rs. 30,000 based on annual revenue. However, despite this transparent framework, the audit underscores the board’s inability to enforce compliance effectively, resulting in a massive financial shortfall.

Audit Exposes Massive IT Company Registration Failures at PSEB

The report highlights several critical issues within PSEB’s operations. The lack of a proactive marketing strategy, effective renewal policy, and the absence of timely monitoring mechanisms are major issues among them. Due to these oversights, several companies were left unregistered beyond their initial validity periods.

According to the audit, PSEB management was informed of the issue however, no response was received. Moreover, the Departmental Accounts Committee (DAC) meeting on January 23, 2024, also addressed the matter, but the outcomes are still pending. The Auditor General has called for an inquiry to determine the reasons behind the registration lapses. Moreover, he suggests a thorough categorization of IT companies, call centers, and freelancers. The audit also highlights the need to calculate renewal charges for each category to recover lost revenue and secure compliance moving forward.

PSEB seems to have missed an opportunity to leverage its registration policy as a reliable revenue source. Reinforcing internal mechanisms and implementing timely renewals can prevent these types of losses and ensure a sustainable financial stream for Pakistan’s IT sector. PSEB must prioritize a robust strategy to avoid repeating such costly errors.

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