ISLAMABAD-Muhammad Zohaib Khan, Chairman of Pakistan Software Houses Association (P@SHA), has proposed that taking advantage of the upcoming federal budget 2023 – 24, the government should announce tax exemptions for IT and ITeS industry in income tax, tax on dividends, capital gains and profits, signaling the potential to achieve 30 percent exports growth in the year ahead, provided IT industry receives its fair share of incentives.
It is pertinent to note that IT industry stakeholders met Prime Minister vis-à-vis budgetary proposals on Tuesday – with the primary aim to swiftly boost IT and ITeS exports of Pakistan. Mr Khan apprised that PM Mian Muhammad Shehbaz Sharif has himself highlighted the IT industry – time and again – for the most lucrative industry for Pakistan vis-à-vis growth in exports is concerned. That is precisely the rationale behind P@SHA’s proposal to the government that it should earmark upwards of Rs13 billion in the finance bill for the IT industry. Zohaib Khan explained that funds allocated for the IT industry should essentially go towards human resources and skills development, infrastructure development, promoting soft-image of and building brand Pakistan and capacity enhancement of the tech ecosystem in the country.
Muhammad Zohaib Khan, who also sits on PM’s Advisory Council on Digital Economy, noted that another area of concern for the IT industry is foreign exchange retention, for which P@SHA proposes allowing 100 percent forex exchange retention in foreign currency accounts and 100 percent repatriation as IT industry is totally dependent and operates on USD. Chairman P@SHA added that IT industry appreciates the idea of special technology zones (STZs); however, in the upcoming budget, benefits meant for STZs should directly go IT and ITeS companies to effectively and efficiently help the exporters directly. Additionally, resources to enable single window operations for STZA licencees coupled with the issuance of virtual licences and strengthening of provincial authorities in the same domain. 
Elaborating the financing needs of the IT industry, Zohaib Khan said that like many other countries, the government of Pakistan needs to introduce cash rebate schemes for the IT industry, preferably, 5 percent on export income and prioritising export refinancing scheme for the industry through discounted interest rate by at least 10 percent as compared to the prevailing key policy rate of 21 percent of the State Bank. This will make access to finance possible for the IT exporters, rationalise cost of doing business with reference to international competitors and enhance country’s ease of doing business score. 
Mr Ali Ihsan, Senior Vice Chairman of P@SHA, maintained that it is crucial for the government to address these IT industry’s demands promptly. By doing so, we can unleash the full potential of IT exports, leading to sustainable economic growth, job creation and positioning Pakistan as a formidable player in the global digital landscape. Junaid Qureshi, President of Open Silicone Valley in California, said that there is no doubt in my mind that Pakistan’s IT exports can reach $15 billion by 2027, which is merely 4 years down the road; however, Pakistan can only attract foreign investors, entrepreneurs, IT companies and multinational IT giants required for the feat, if it implements policies that remain consistent, reliable and significantly more favourable than those offered by other competing countries.