|
Getting your Trinity Audio player ready...
|
The government of Pakistan recently announced a new rule allowing IT companies to keep half of their earnings from foreign sales in a local account in dollars.
This decision, made possible by the Special Investment Facilitation Council (SIFC) and the State Bank, aims to help Information Technology companies that previously had to keep their dollars abroad due to restrictions.
Read Also: SIFC Strategic Vision
The change is in response to the specific needs of the IT industry. These companies often have to pay salaries to international employees working with foreign clients and cover monthly expenses for services like cloud hosting, marketing, and sales on platforms such as Google, Amazon, Azure, LinkedIn, and others.
Dr. Umar Saif, the Caretaker IT Minister, emphasized the collaboration with SIFC and the State Bank to implement this policy. The goal is to let Information Technology companies keep a larger portion of their earnings within Pakistan. This flexibility allows them to use the retained dollars for international expenses without restrictions.
Read Also : Unlocking Economic Growth: The Special Investment Facilitation Council (SIFC) in Pakistan 2023-24
This policy has already had a positive impact, with Information Technology companies starting to bring back their dollars. Within just one month, the IT sector’s export revenue increased by an impressive 14%, marking a 20% growth compared to the same period last year.
Dr. Saif is optimistic about the future of the IT industry, stating that if this growth continues, the country is on track to exceed $3 billion in IT exports within a few months.
He reaffirmed the government’s commitment to supporting the expansion of the IT sector and its ambitious goal of reaching $10 billion in IT export revenue.
This policy change is expected to create a more favorable environment for Information Technology companies to handle their financial transactions within the country, contributing to the overall growth and success of the IT industry in Pakistan.
The government remains dedicated to fostering an environment that promotes the upward trajectory of the Information Technology sector and achieving significant milestones in export revenue in the near future.