ISLAMABAD – In a landmark development for IT sector of the country, Cabinetapproved the Digital Pakistan Policy in its meeting chaired by the PrimeMinister of Pakistan. Anusha Rehman, The Minister for IT and Telecom andSecretary (IT) presented the high level contours of the policy to theCabinet.
ProPakistani had earlier learned that Prime Minister had decided not toapprove the Digital Pakistan Policy while saying that next government wouldbe in best position to approve the policy that was finalized and presentedto him last week.
However, it appears that the premier changed his mind and approved thepolicy just one week ahead of completion of current government’s tenure.
A statement issued said that the vision of the policy is to improvecitizens’ quality of life and economic well-being by ensuring availabilityof accessible, affordable and reliable high quality ICT services.
The statement said that the government strongly believes in mass adoptionof emerging digital technologies and innovative applications to enablecross-sector socio-economic development and transformation of economicactivities, governance models and achievement of sustainable developmentgoals.
“Digital Pakistan’ Policy will serve as a catalyst towards a holisticDigital ecosystem in the country with advanced concepts and components forthe rapid delivery of next generation digital services, applications andcontent”, the Minister said after the approval of the policy document.
The Minister congratulated and appreciated the 4 years of hard work of ITMinistry team particularly the current and previous Secretaries of MinistryIT, Member-IT, Director IT and his team, for their dedicated effortstowards the finalization of the subject policy.
She further thanked the relevant stakeholders, for providing their valuablefeedback throughout the process.
Prior to its submission to the Cabinet, to ensure the element ofinclusiveness, consultations with all relevant stakeholders includingvarious Divisions, public and private organizations, PASHA, civil society,Academia, provincial governments, IT & Telecom industries and Associationsrelated to Persons with Disabilities etc. were carried-out in the form ofmeetings, workshops and seminars.
A formal inter-divisional consultation was also carried out by thisMinistry as per the GOP Rules/Regulations.
The Minister further explained that this policy document along with itsother initiatives also focus on youth, women and girls. This policy hasseveral measures that will ensure equal access to ICTs for women and girlswhich will help reduce digital divide and support gender equality topromote economic growth of the country.
Ministry of IT and Telecom will play the role of an enabler andfacilitator, for digitization, providing necessary guidance where required,while relevant federal ministries, divisions and departments will be takingthe lead role for the implementation of policy strategy falling withintheir domain.
Digital Pakistan Policy also includes a specific chapter for the fiscal andnon-fiscal incentives for the IT/ITeS industry which were finalized inconsultation with PASHA .
Current incentives and promotional initiatives already in place for thesector include:
– 100% foreign ownership allowed – 100% repatriation of capital & dividends (subject to SBP Approval) – IT & ITeS Export Income Tax exemption till June 2019 (Extended till 2024 just recently) – Income tax holiday for Venture Capital companies/funds till June 2024
The additional incentives particularly for IT startups were awarded in thebudget (FY 2017-18) to promote innovation & entrepreneurship that includedbut not limited to exemption for a period of three years from Income Tax,Minimum Tax and Withholding Tax for PSEB registered and certified ITstartups, exemption from sales tax on export of IT services from Islamabadand other federal territories and IT Companies allowed to open ForeignExchange Accounts in Pakistan.