SBR-FBR Policies Are Hindering IT Export Growth: Minister Amin-ul-Haque

According to the latest reports, IT exports remittances including telecommunication, computer, and information services surged to an all-time high of $2.616 billion growing by 24% during the fiscal year 2021-22 as compared to $2.108 billion during 2020-21. The official data further unveils that Information and Communication Technology (ICT) export remittances were almost $235 million in June 2022 which means it registered a growth rate of 11% as compared to the $210 million that was reported in June 2021.

IT Export Growth Thwarted Due To SBR-FBR Policies

Prime Minister Shehbaz Sharif recently stated that Pakistan offers large opportunities for investments in the technology sector. The Pakistani government even intends to increase IT exports to $15 billion in the coming years. In order to achieve this target, he said that foreign tech companies will be facilitated in all respects with regard to investment, expansion, and close collaboration.

Federal Minister for Information Technology and Telecommunications Syed Aminul Haque stated that the Federal Board of Revenue (FBR)’s policies and some rules of the State Bank of Pakistan (SBP) are hindering the growth of IT exports in Pakistan. In addition to that, they are also increasing export remittances through freelancers. While presiding over a meeting, Haque stated:

“Due to the FBR policies and some rules of the SBP, it is feared that local talent may be working here but by operating its own company from another country, that country may be getting all the foreign exchange and credit of IT exports”

He also stated that it is necessary to solve the problems of the IT and Telecom industry. Moreover, it should be given maximum relief for the enhancement of the country’s digital economy.

The Prime Minister’s Advisory Council on IT members also suggested that there should be no taxes for IT, freelancers, E-commerce, and Startups in order to facilitate domestic digital transformation and growth in exports. Otherwise, it will encourage people to park a significant portion of their earnings abroad which will be a loss to the exchequer. There is a need for consistency in government policies in order to attract local and international investors. The IT minister added:

“When all the stakeholders/institutions are on board and the issues resolved in a timely manner, there is no reason the industry cannot become the backbone of the country’s economy and lead the country out of the economic crisis”

Minister further stated that the FBR policies were an impediment to the increase in the number of IT exports and freelancers and export remittances which forces software companies and freelancers to shift their business to other countries. It would be dangerous because our talent would be used here but the benefits and credit will go to another country.

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