March 07, 2024 (MLN): The Kingdom of Saudi Arabia's latest technology company raised $130 million in fundraising before going public. Offering software to e-commerce firms for payments and building websites the knowledge pool in the oil behemoth is cashing out. Quite aligned with diversification away from Oil as envisioned by MbS.
Countries need to set the platform for growth by capitalizing on their domestic talent, providing the right set of incentives in the ecosystem and nurturing ground to grow vibrant, globally integrated, high-value-adding and export-enhancing industries.
Plain vanilla agri-based manufacturing and tolling are ending soon.
Pakistan too should offer more incentives to domestic IT firms to list on PSX. Yes, the taxation regime is already favourable but listing on PSX should give more visibility, tax benefits, high valuation and better credibility to the companies.
With more and more IT firms dominating the bourse, the shape of the economy would migrate towards the 21st century as well.
There are notable players already on the exchange – Octopus Digital, Avanceon Middle East & South Asia Systems Limited NETSOL Technologies Inc. – but the country can only come out of the debt burden and low exports conundrum by generating pools of talent and sellable skills globally.
IT companies should make the most money, offer the most export earnings, pay the highest salaries and create the most jobs. Period.
The author is an independent economic analyst and writes on Twitter and Linkedin.
