ISLAMABAD: The Information Telecommunication (IT) and IT-enabled Services (ITeS) export remittances comprising computer, and call center services, surged to $379.251 million at a growth rate of 43.55 percent during the first quarter (July-Sep) of FY 2020-2021 compared to $264.187 million during the same period of 2019-2020.
This has been revealed in the latest performance report of the Pakistan Software Export Board (PSEB), an organisation functioning under the Ministry of IT and Telecommunication.
It stated that the Ministry of IT was taking all possible steps to ensure sustainable growth of Pakistan's IT industry and to ensure close coordination with the IT industry and associated stakeholders.
The generous incentives from the government and various projects to enhance capacity and capability of the IT industry have resulted in strong industry growth rates.
On the direction of Federal Minister for IT and Telecommunication Syed Aminul Haque, the Ministry of IT and Telecom is committed to increasing the IT exports, and making special efforts in this regard.
Incentives to the industry include zero income tax on IT and ITeS exports till June 2025, tax breaks for the PSEB-registered IT start-ups for three years, up to 100 percent foreign ownership of IT and ITeS companies, up to 100 percent repatriation of profits for foreign IT and ITeS investors, tax holiday for venture capital funds till 2024, among other incentives.
Spokesperson of the ministry told Business Recorder that more than 6,000 Pakistan-based IT companies were providing IT products and services to the entities in over 100 countries.
Strong incentives are being provided to the IT industry, and there are several projects intended to facilitate and assist the IT industry in its growth trajectory, and to ensure continued upward momentum in local and export earnings.
Pakistan was ranked the 3rd most popular country for freelancing in the world, and Pakistani IT companies are providing products and services to the world's largest companies.
The IT and IT enabled Services (ITeS) export remittances comprising computer services and call center services have surged to $379.251 million at a growth rate of 43.55 percent during the first three months (July-September) of 2020-2021, in comparison to $264.187 million during the same period during 2019-2020.
The ITeS export remittances surged by 23.71 percent to $1.230 billion in the fiscal year 2019-2020 compared to $994.848 million during the same period last year (2018-2019).
The government has set a target of $5 billion for export remittances through information technology and IT-enabled services during the next three years.
Federal Minister for IT and Telecommunication Syed Aminul Haque said that the government was taking all possible steps to ensure long-term IT industry growth trajectory and to enhance IT industry exports.
He also lauded the IT sector for its contributions to Pakistan, saying that Pakistan's IT industry had reached an important milestone in its journey, and it had the potential to be the largest foreign exchange earner for Pakistan.
Copyright Business Recorder, 2020
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