The Pakistani government has introduced a significant policy change allowing Information Technology (IT) companies to retain 50% of their export revenue in a local account, addressing challenges faced by the sector.
Previously, restrictions compelled IT companies to keep dollars abroad, hindering financial flexibility. Facilitated by the Special Investment Facilitation Council (SIFC) and the State Bank, this decision is a collaborative effort to cater to the unique needs of the IT industry.
Caretaker IT Minister Dr. Umar Saif emphasized the positive impact of this intervention, enabling IT companies to use retained dollars for international expenses without constraints. The policy shift has already yielded results, with a remarkable 14% increase in IT sector export revenue within one month, reflecting a 20% growth compared to the same period last year.
Dr. Saif expressed optimism about the industry’s trajectory, anticipating that if the current growth rate persists, Pakistan could surpass $3 billion in IT exports in the coming months. He reiterated the government’s commitment to supporting the sector’s expansion and achieving the ambitious goal of reaching $10 billion in IT export revenue.
This policy change is expected to create a more favorable environment for IT companies to conduct financial transactions within the country, contributing to overall industry growth and success. The government remains focused on fostering an environment conducive to the IT sector’s upward trajectory and aims to achieve substantial export revenue milestones in the near future.
