The caretaker federal government made several crucial decisions to revitalize the country's information technology (IT) and telecom sectors during a recent meeting of Pakistan's Apex Committee.
These actions are intended to address major issues and pave the way for prospective foreign investment.
Increasing IT and telecom
To encourage equity and justice, the government has decided to put the power cost for the telecom industry in line with other industries.
Rewards for IT exporters
A 5% cash bonus on IT exports from the previous year is intended to motivate IT companies and support the sector.
Skills development
There is a recognized need to close the talent gap in the IT industry. To upskill the workforce, collaborations between government and academia are encouraged.
Foreign interest
Highlighting the sector's potential, Saudi Arabia, the UAE, and Qatar have expressed interest in funding IT initiatives and hiring Pakistani IT specialists.
Facilitation measures
A number of measures are being examined as facilitation to help IT enterprises. These include allowing IT companies to retain 100% of their USD earnings, enabling digital currency transfers internationally, and providing exceptional interest rates on local USD accounts.
Taxation and dispute resolution
Plans for fixed taxes for PSEB-registered IT exporters as well as an online dispute resolution system are being developed to promote efficiency and stability.
R&D support
Regulations on financing of smartphones and an increase in the R&D allowance for mobile phone manufacture will probably promote innovation and accessibility.
Cloud computing
The government intends to create a framework for the procurement of cloud services and designate locations with the necessary infrastructure.
Investment promotion
To organize efforts, a Special Purpose Company for the promotion and facilitation of investments is under discussion.
Agricultural modernization
As agriculture undergoes technical advancements, it will become more important than ever to have access to loans, crop insurance, and improved seeds, fertilizers, and irrigation systems.
Infrastructure and productivity
Developing the infrastructure and enhancing inputs are considered to be major productivity factors.
These initiatives and conversations demonstrate the government's dedication to reviving significant industries and promoting economic growth through wise investments and reforms.
