The Pakistan Software Houses Association ([email protected]) held a grand industry event to celebrate the largest incentives package for the IT industry, announced by the federal government last week.
Prime Minister’s Shahid Khaqan Abbasi’s announcement was the result of the work by Minister Anusha Rehman and her team at MoITT, in strong partnership with [email protected], the primary trade association for the IT and ITeS industry.
The incentives package will cover some of the key industry demands put forth by [email protected] and includes the following major items:
- Extension of the tax holiday on IT exports from 2019 to 2025
- 5% Cash Reward on IT exports, similar to rewards for other sectors such as textile, leather and sports.
- Sales tax of 5% on ITeS within the Federal Areas.
- Special Economic Zones (SEZ’s) for the tech sector to be defined by the BOI and MoITT
- Access to financing from commercial banks at preferential rates.
Several hundred industry leaders and professionals attended the event as a token of thanks to the guest of honor, Minster Anusha Rehman. She complimented [email protected]’s role in pushing the government towards these key areas and stated
“I hope all of you will benefit from this historic incentive package and will commit to growing into one of Pakistan’s largest sectors.”
[email protected]’s Chairman, Barkan Saeed, revealed how this milestone was achieved and stated,
“This package proves the importance of engaging the government as a partner and demanding the most beneficial policies for our important industry. This will help us grow by several billion dollars in the coming years.”
The export holiday has been included in the Finance Bill while the remaining incentives will be formalized through SRO’s in the coming weeks.
Shehryar Hydri, [email protected]’s Secretary General, emphasized
“Our current team has built upon the work done over several years and there is still a lot more to do on top of this strong framework, so that our IT industry can take its rightful place.”