Pak PM announces incentives for IT sector, orders building special technology zones in provincial capitals

Pakistan Prime Minister Imran Khan on Tuesday announced incentives for the Information Technology sector to enhance its exports and directed the authorities to develop Special Technology Zones (STZs) on a fast-track basis in Islamabad as well as all provincial capitals to create hubs of technology innovations.

''We are announcing a tax holiday and 100% Forex retention for IT/ITeS Companies and freelancers registered with Pakistan Software Export Bureau (PSEB) to incentivise investment in the IT sector for economic turnaround," said Khan, who chaired a high-level meeting to follow up on his foreign visits and IT sector initiatives introduced by the government.

Emphasising on his vision to boost IT exports to USD 50 billion in the next few years, the Prime Minister highlighted the importance of unleashing the IT industry by providing them ease of doing business and the best incentives globally available, according to a statement issued by the PM Office.

He announced a historic reform package for the growth of the IT sector, including the establishment of Pakistan Technology Startup Fund to provide seed funding worth PKRs. 1 Billion to around 50 Startups annually.

Prime Minister Khan directed the authorities concerned to establish Special Technology Zones (STZs) on a fast track basis in Islamabad and all provincial capitals to create hubs of IT and technology innovation and investment in cities.

In the first phase, Islamabad will be declared as Special Technology Zones so that IT firms and freelancers can avail the benefits offered by Special Technology Zones Authority (STZA).

He also directed them to introduce necessary changes in the Foreign Exchange and Income Tax policies in order to help IT Startups thrive in the country.

These reforms include launch of Roshan Digital IT Accounts (RDIA) by State Bank of Pakistan to allow freelancers and IT firms to retain 100% of their foreign income in foreign exchange with no restrictions on the movement of forex; resolution of double taxation of IT Sector by FBR; and the exemption from Capital Gains Tax of venture funding into startups.

"Tech-savvy youth and Information Technology sector are Pakistan's biggest assets that can be exploited to bridge the huge current account deficit," he said.

Earlier, Prime Minister Khan was informed that ICT export remittances in FY 2020-2021 remained USD 2.1 billion as compared to USD 1 billion in 2018, while Pakistan was exporting to more than 120 countries.

The meeting was attended by Finance Minister Shaukat Tarin, IT Minister Syed Amin ul Haque, NSA Dr Moeed Yusuf and other senior officials.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)