Government approves ‘historic package’ for IT and telecom sectors

This development was made when the Minister for Information Technology & Telecom (IT&T) met with the Minister for Finance

Gap between IT firms, corporate sector hinders growthThe Government of Pakistan has approved a historic package by granting mass incentives to the information and technology and the information and telecom sector (IT/ITeS).

This development was made when the Minister for Information Technology & Telecom (IT&T), Syed Amin ul Haque, met with the Minister for Finance, Shaukat Tarin, on Tuesday.

According to the IT&T minister, the finance minister has approved a fund to provide cash rewards to the IT/ITeS companies if they achieve a trade surplus on their exports from Pakistan.

Haque added that 1% of the IT/ITeS industry’s yearly export remittances would be allocated annually to the PSEB (Pakistan Software Export Board).

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The PSEB would utilize these funds to develop human resources skills, enhance IT companies’ capacity, branding/marketing, business development, and establish software technology parks across Pakistan.

The IT&T minister expressed his gratitude to the finance minister for agreeing to form a high-level and high-powered dispute resolution committee to resolve any tax-related problems of the IT/ITeS industry.

As per the directions of the finance ministry, the Federal Board of Revenue (FBR) would now revise and expand the tax definition of the IT/ITeS industry.

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This step would ensure the coverage of all the IT and ITeS sub-sectors.

The IT&T minister also expressed his gratitude to the finance ministry to promote foreign-owned companies operating in Pakistan with outbound remittances.

Haque also expressed his gratitude to the Advisor to the Prime Minister on Commerce & Investment, Abdul Razak Dawood, for supporting the IT/ITeS industry proposals.

Moreover, the IT&T minister and the finance minister agreed upon the steps for the Special Foreign Currency Accounts to facilitate the opening of foreign currency accounts for the IT/ITeS industry, startups, and freelancers.

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