IT and IT services exports surged to $1.948 billion at a growth rate of 29.26 percent during July-March financial year 2021-22, in comparison to $1.5 billion in the same period last year, according to the Economic Survey 2021-22 released on Thursday. These exports include telecommunication, computer, and information services.
During the first nine months of FY22, the government provided 100 percent tax credit on export income from IT and IT-enabled services until 30th June 2025. The sector was also given a 100 percent tax credit on profits and gains derived by the IT startups for the tax year in which a startup is certified by Pakistan Software Export Board (PSEB), and for the next two years.
Other incentives offered to the sector include:
The rapid expansion of information technology (IT) is of crucial importance for economic growth because it enables various participants in economic and social life to have quick and easy access to information and knowledge. IT help companies to reduce the cost of information and communication and improve their productivity. It also allows access to new markets and lower capital costs of financial markets. Moreover, the use of IT, in particular, Internet access, can promote entrepreneurial and small and micro-business activities which in turn enhance sustainable economic development.
The Ministry of Information Technology and Telecommunication is taking concrete steps for the adoption of the latest IT tools for the improvement of national IT infrastructure that can be used to raise national productivity and growth.