Prime Minister Imran Khan has approved many incentives to help the IT/ITES sector, freelancers, and startups, in a historic move.
MoITT proposed tax exemption benefits, which were the most requested by the industry, as well as other fiscal and non-fiscal incentives for the industry.
“I am extremely grateful to Prime Minister Imran Khan and Federal Minister of Finance and Revenue Mr. Shaukat Tareen for their unprecedented and unwavering support for Pakistan’s IT/ITES sector and freelancers.” Syed Amin Ul Haque, the Federal Minister for Information Technology and Telecommunications, revealed this on Tuesday.
Syed Amin-Ul-Haque also thanked the IT industry on the PM’s tax exemption. He went on to say that the Federal Government’s strong growth ambitions and timely interventions have put all stakeholders on the same page in terms of meeting the targeted business potential and competing in the worldwide market.
The decision was reached at a meeting convened by Prime Minister Imran Khan on February 22nd. The conference included representatives from the Ministry of Information Technology and Telecommunications, the Pakistan Software Export Board, the State Bank of Pakistan, the Federal Board of Revenue, the Special Technology Zone Authority, and the Ignite National Technology Fund.
Specialized Foreign Currency Accounts for IT/ITES Companies and Freelancers will be established to fulfill their operational demands, addressing the long-standing issue of IT companies regarding easy inflow/outflow of Foreign Currency. In a historic move, the Prime Minister has mandated that IT/ITES companies and freelancers be allowed to keep 100% of remittances received through proper banking channels in FCY Accounts without having to convert them into PKR.
Outward transfers from FCY accounts will also be unrestricted for PSEB-registered IT companies and freelancers. The Prime Minister has also asked the SBP to provide financing streams for the IT/ITES sector and freelancers, taking into account their operational architecture and industry demands.
As part of this historic package for the development of a public-private partnership venture capital fund, the Prime Minister also approved the recommendations of the Pakistan Technology Startup Fund. This Fund will be established through public-private collaborations by the Ignite National Technology Fund.