ISLAMABAD: The Information Telecommunication (IT) and IT-enabled Services (ITeS) export remittances comprising computer, and call centre services surged to $958 million at a growth rate of 40 percent during the first half (July-December) of fiscal year 2020-21 compared to $684 million during the same period of 2019-20, the Pakistan Software Export Board (PSEB) data revealed.
The ITeS export remittances comprising computer services and call centre services have surged to $194 million at a growth rate of over 43 percent in December 2020 compared to $135 million during the same month of 2019.
The IT sector has recorded the highest ever export receipts of $194 million in a single month, the Ministry of Information Technology and Telecommunication claimed. 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 Information Technology and Telecommunication Aminul Haque stated that the IT exports increased by 40 percent in first half of current financial year.
The ministry is taking all possible steps to further increase the exports, Haque added.
Pakistan’s IT industry is growing fast, where the role of PSEB and industry is commendable, he added.
The remarkable growth in the IT exports was driven through software consultancy, e-commerce, and telecommunication services.
Pakistan’s leading software houses received long-term projects from clients in the exporting markets (USA, UK, EU, and the Middle East) over the last few months due to the high demand for IT services both in these regions and worldwide, said a senior official of the ministry.
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.
The official further said 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.
Copyright Business Recorder, 2021