The IT and IT-enabled Services (ITeS) export remittances comprising computer services and call center services increased by 2.89 percent to $854 million during July to October of FY2022-23 compared to $830 million during the same period of last fiscal year.
The State Bank of Pakistan (SBP) data shows that ITeS export remittances have increased by 13.33 percent to $221 million in the month of October 2022, compared to export remittances of $195 million reported for the same period last year.
Net exports of $721 million have been reported by the central bank, depicting an increase of 14.44 percent as compared to net exports of $630 million in the same period last year.
Federal Minister of Information Technology and Telecommunication Syed Aminul Haque has stated that the IT exports target of $5 billion would be achieved by June 2023. He further said that the government is taking all possible steps to ensure a long-term IT industry growth trajectory and enhance IT industry exports to $5 billion by 2023.
However, the Ministry of Information Technology and Telecommunication has warned the government that on account of the non-implementation of agreed incentives, lack of consistency in policies as well as the without resolving the tax and banks-related issues, the telecom sector exports remittances may suffer besides compromising its digital vision.
The ITeS exports declined by 0.3 percent during the first quarter of the current fiscal year 2022-23 and remained at $633 million compared to $635 million during the same period of the last fiscal year. The decline in the ITeS exports remittances rung the alarm bill and serious reservations were expressed among the concerned quarters.
The Federal Minister for IT and Telecom, Aminul Haque, has raised the issues being faced by the sector in different meetings including the one held with the prime minister in the chair. Haque has said that the sector may face further decline if immediate attention were not paid. The minister has also stressed resolving the outstanding issues of taxation as well as related banks.
Govt should understand that the level of IT export they usually count is not sustainable. Tax free IT sector is the priority need of this time.