IT sector to make doing business easier.
Lack of cooperation and synergy between government departments prevent industry growth.
KARACHI: The Pakistan Software Houses Association (P@SHA) has urged the government to make doing business easier in the nation in order to boost the much-touted export of information technology (IT).
P@SHA stated in a statement that while the Pakistan Software Export Board (PSEB) and the Federal Ministry of Information Technology and Telecommunications (MoITT) have supported the business, other essential stakeholders “have failed to provide a same degree of support.”
“Improving the ease of doing business necessitates numerous actions. A five-year tax break for IT companies that also covers paperwork linked to compliance is essential, according to Parvez Iftikhar, an expert in the ICT sector.
“The government must integrate fundamental IT and soft skills into the regular school curriculum. Local IT companies should be given preference when bidding for contracts, and authorities should increase broadband connection, particularly in smaller cities. Additionally, the government ought to make a big effort to introduce PayPal in Pakistan, according to Iftikhar.
Syed Aminul Haque, the Federal Minister for ITT, recently criticised the public office for its lack of assistance and cooperation in an unusual step.
“The industry acknowledges the stance of the federal minister for IT about the issues of the IT industry,” says Zohaib Khan, Chairman of P@SHA. It is past time for the appropriate parties, including the finance ministry, FBR, SBP, and SECP, to take responsibility for assisting the IT sector. In terms of legislative changes, the sector calls for a five-year tax holiday (promised till 2025), hassle-free currency retention, a 5% cash reward for IT exporters, and capacity building by providing young people with market-driven IT skills.
“While Pakistan struggles with its economic crises, the only sector that has the ability to stabilize Pakistan’s economy is IT & IT-enabled services. The industry provides growth in IT exports and the inflow of revenue in the form of investments, both of which are essential to Pakistan’s economy, to bridge the current account deficit, he continued.
Technology innovation is advancing quickly, and Noman Ahmed Said, CEO of SI Global Solutions, said that consistency is the key to managing it.
“While government bodies should catch up by modernizing tech rules, the tech sector needs to stand up and take on more responsibilities. Examples of neighboring nations and the roadmaps they have adopted are available. P@SHA has conducted study by contrasting the policies of neighbouring nations, and this has paid off handsomely,” he continued.
The way we work, live, and learn is continually changing as a result of technology. The development of cloud computing was as significant economically as it was technologically, much like the personal computer itself. The cloud enables businesses of all sizes to access vast computer and storage resources on demand, paying for the processing they require without incurring capital costs, according to Ahmed.
“It is important to note that, in terms of the services sector, the IT industry recorded the largest exports in FY 2021–22, with export revenues from the IT & ITeS business totaling nearly $2.6 billion. He continued, “It is the only industry with a 77% trade surplus.
Prime Minister Shehbaz Sharif set an export goal for the sector of $15 billion, but chairman P@SHA remarked that the sector lacks the assistance and participation of government ministries.
He emphasised that in order to reach the export goal, policy incentives must be implemented and barriers to doing business must be eliminated.
According to Khan, Pakistan’s IT sector employs more than 600,000 people both directly and indirectly.
“However, policy execution and consistency must be assured in order to increase exports from the IT & ITeS sector. Pakistan must establish itself as an advantageous location for technology. The relevant ministries’ consistent lack of assistance is detrimental to the prime minister’s goal of increasing exports, Khan remarked.
The chairman of P@SHA emphasised, “We firmly urge the prime minister to exercise his rightful leadership and ensure cooperation and synergy across the key ministries and departments to achieve economic growth of Pakistan through enablement of the IT & ITeS industry.
