Minister for Finance, Senator Muhammad Aurangzeb says collaborative approach, consistent policies and targeted reforms are essential to unleash Information Technology sector’s full potential.

He was chairing a high-level meeting of the Prime Minister’s Committee on IT Export Remittances in Islamabad today to explore ways for boosting the flow of IT export remittances.

The Minister underscored the IT sector’s critical role as a rapidly growing industry contributing to Pakistan’s economic growth. He said IT sector has the potential to be a cornerstone of foreign exchange generation through exports remittances.

The meeting highlighted the sector’s opportunities and challenges, focusing on improving the ease of capital movement to boost IT export remittances. The meeting noted that while IT exports are steadily increasing, a substantial portion of revenue remains unremitted.

It emphasized the need for simplified procedures, consistent tax exemptions for freelancers, and addressing issues related to remote workers classification and small IT firms to create a more favorable environment for IT businesses.

It was noted that Pakistan is home to 2.32 million freelancers-contributing 15% of IT exports, yet only 38,000 hold bank accounts. It was further noted in the meeting that 500 new accounts are being opened weekly, as par SBP data, retaining these account holders and encouraging others to follow the course is of crucial importance.

The Governor State Bank of Pakistan updated the meeting on measures, taken to address these challenges, including streamlining account opening procedures, awareness campaigns, improving complaint resolution mechanisms.

The Finance Minister reaffirmed the government’s commitment to fostering the IT sector as a vital contributor to the economy. He urged all stakeholders to work collectively to overcome challenges, promote IT exports, and establish Pakistan as a competitive player in the global IT industry.