December 13, 2024 (MLN): The urgent need for access to global payment gateways like PayPal and the creation of similar payment solutions locally was outlined during the meeting of Prime Minister’s Committee on IT Export Remittances
It was noted that Pakistan is home to 2.32 million freelancers, contributing 15% of IT exports yet only 38,000 hold bank accounts, as per the press release issued today.
Federal Minister for Finance, Senator Muhammad Aurangzeb, chaired the meeting and discussed strategies for boosting IT export remittances, which are vital for Pakistan’s economic growth and digital economy.
Explored leveraging the Roshan Digital Account to facilitate international remittances for IT companies.
This move aims to empower IT professionals and freelancers, ultimately enhancing Pakistan’s global competitiveness in the digital economy.
The Finance Minister underscored the IT sector’s critical role as a rapidly growing industry contributing to Pakistan’s economic growth.
“The IT sector has the potential to be a cornerstone of foreign exchange generation through export remittances.
A collaborative approach, consistent policies, and targeted reforms are essential to unleash its full potential and repatriation of foreign earnings,” he stated.
The meeting also highlighted the sector’s opportunities and challenges, focusing on improving the ease of capital movement to boost IT export remittances.
Participants noted that while IT exports are steadily increasing, a substantial portion of revenue remains unremitted.
Discussions emphasized the need for simplified procedures and consistent tax exemptions for freelancers.
Additionally, issues related to the classification of remote workers and small IT firms were highlighted to create a more favorable environment for IT businesses to remit their earnings back into the country.
While 500 new accounts are being opened weekly, as per SBP data, retaining these account holders and encouraging others to follow the course is of crucial importance.
The Governor SBP updated the committee on measures taken to address these challenges, including streamlining account opening procedures and conducting awareness campaigns.
He also highlighted improvements in complaint resolution mechanisms and the prioritization of the IT sector in banking frameworks.
To ensure data-driven discussion and effective policymaking, it was decided to form a working group comprising representatives from FBR, SBP, the IT Ministry, P@SHA, and the Freelancers Association.
The group will focus on harmonizing data, identifying significant issues, simplifying processes, enhancing transparency, and ensuring continuity of progress made by SBP and other stakeholders.
The Finance Minister reaffirmed the government’s commitment to fostering the IT sector as a vital contributor to the economy.
He urged all stakeholders to work collectively to overcome challenges, promote IT exports, and establish Pakistan as a competitive player in the global IT industry.
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Posted on: 2024-12-13T16:01:35+05:00
