The IT industry of Pakistan with low telecommunication cost, 100 percent ownership of equity and repatriation of the foreign investors profits as well as tax exemption until 2016, has the potential to increase exports from $1.4 to $11 billion by 2011, Business Recorder learnt.
As a result of the government incentive-oriented policy, Pakistan is now emerging as a major player in the global IT market. These initiatives include 100 percent ownership of equity to foreign investors with the incentive to repatriate profits and tax exemption to it companies until 2016. With the overall $2.8 billion IT industry including annual export of about $1.4 billion, Pakistan attracting investment which is likely to touch over $11 billion by 2011.
IT exports in FY 2005-2006, as reported by the State Bank of Pakistan (SBP), were $72.210 million, thus exceeding the target of $72 million. This represents an annual increase of 56 percent as compare to the exports of $46.355 million in FY 2004-2005.
There are about 700 active IT companies in Islamabad, Karachi and Lahore. Other cities are being surveyed, and it is expected that there are around 50 IT companies in other smaller cities and towns. Growth in Islamabad, over the last three years, has been around 300 per cent, Karachi around 180 percent and in Lahore it is around 150 per cent.
The global community has placed Pakistan in the 'First Category' countries in 2007. Previously, in 2006 Pakistan was placed in the 'Third Category' countries. Moreover, Pakistan's IT revenue had grown to 59 percent in 2006. Similarly, new IT parks in major cities are being set up across the country while 750,000 square feet of space has already been leased out to IT companies for new parks.
There are many Pakistani IT companies that have developed world class software's in areas such as car leasing, enterprise application integration, mortgage lien processing, stock market order management, mobile convergence, data and web content management for some of the top most corporations of the world.