In a historic move, several incentives have been approved by Prime Minister Imran Khan to facilitate the IT/ITES Sector, freelancers, and startups.
Tax Exemption benefits, which were the biggest demand of the sector, and other fiscal and non-fiscal incentives for the industry were proposed by MoITT.
“I am very grateful to Prime Minister of Pakistan Imran Khan and Federal Minister for Finance & Revenue Mr. Shaukat Tareen for unprecedented and unconditional support to IT/ITES sector and Freelancers in the country.” This was stated by Federal Minister for IT & Telecom Syed Amin Ul Haque here on Tuesday.
Syed Amin-Ul-Haque also congratulated the IT sector on Tax exemption relief by the PM. He further elaborated that aggressive growth targets and timely interventions by the Federal Government have set all the stakeholders on the same pace to meet the desired business potential and compete in the international market.
The approval was made in a meeting chaired by Prime Minister Imran Khan on Tuesday, 22nd February. Officials of the Ministry of IT & Telecommunication, the Pakistan Software Export Board, State Bank of Pakistan, Federal Board of Revenue, Special Technology Zone Authority, and Ignite National Technology Fund were also present in the meeting.
The long outstanding issue of IT companies regarding easy inflow/outflow of Foreign Currency has also been addressed as Specialized Foreign Currency accounts for IT/ITES Companies and Freelancers will be introduced to meet their operational needs. In a historic move, PM has directed to allow IT/ITES Companies and Freelancers to retain 100 percent amount of remittances received through proper banking channels in FCY Accounts without any compulsion to convert them into PKR.
Furthermore, there will be no restriction of outward remittances from FCY accounts for PSEB registered IT Companies and Freelancers. Prime Minister has also directed SBP to introduce Financing streams for the IT/ITES sector and Freelancers keeping in view operational architecture and industry needs for these sectors.
Recommendations of the Pakistan Technology Startup Fund were also approved by the Prime Minister as part of this historic package for the creation of a public-private partnership venture capital fund. Ignite National Technology Fund will create this Fund through public-private partnerships.