The interim government has unveiled an ambitious plan aimed at transformingPakistan’s information technology sector and bolstering its foreignexchange reserves. Their strategy involves training approximately 200,000young individuals in IT skills and establishing co-working spaces tailoredfor freelancers. This initiative is in response to a sector that currentlygenerates $2.6 billion in exports but possesses the potential to reach acapacity of $10 billion.
The interim Minister for Sci-Tech and IT, Umar Saif, expressed his optimismthat the IT industry could evolve into a significant export-based sectorduring a press conference following a meeting of the Special InvestmentFacilitation Council (SIFC) in Islamabad.
One of the key components of this comprehensive plan is the digitization ofthe tax system. This move aims to broaden the tax base by bringing moreindividuals into the tax net and accurately assessing the tax contributionsof registered taxpayers. Additionally, the introduction of digital paymentmethods seeks to modernize financial transactions and facilitate ease ofbusiness within the IT sector.
Saif also addressed the disparity between the IT sector’s current exportsat $2.6 billion and its untapped capacity of $10 billion. This gap isprimarily due to payment difficulties faced by investors. The governmentplans to streamline this process, potentially enabling Pakistan to earn anadditional $1 to $1.5 billion. The sector’s trade surplus, alreadysignificant at 70% to 80%, could further increase as a result.
Furthermore, the government’s commitment to training 200,000 youth in ITskills is anticipated to have a transformative effect. By expanding theworkforce by 100,000 individuals, the country could potentially achieve$2.5 billion in IT exports. With the addition of 200,000 individuals, thesector could conceivably contribute up to $5 billion to Pakistan’s exportearnings. This demonstrates the significant growth potential within the ITindustry.
Read Top Stories
In addition to these measures, the government has outlined plans to auction5G licenses within the next 10 months, providing a boost to thetelecommunications infrastructure. The creation of freelancing facilitiesand co-working spaces for 500,000 individuals aims to harness the power ofthe digital gig economy, potentially generating billions of dollars inincome for the country.
The launch of Starlink, a low orbit satellite system, will bring internetconnectivity to remote areas, further bolstering digital access. Handsetmanufacturing and innovative financing schemes for cell phones are alsopart of the broader strategy, alongside efforts to bring internationalpayment platforms like Stripe and PayPal to Pakistan. These multifacetedinitiatives indicate the government’s determination to unlock the fullpotential of the IT sector and stimulate economic growth
