The Government of Pakistan is very enthusiastic about the advancement and development of the IT industry in Pakistan. To create a technological park in Islamabad, the ministry of technology and Korea recently inked a PKR 10 billion deal. So, Pakistan’s government is taking ground-breaking efforts to implement IT reforms in Pakistan in the development of the IT industry.
IT reforms in Pakistan by the Government to ease and encourage the IT industry in Pakistan
- Tax holiday for IT/ITeS companies and freelancers
- 100% forex retention for IT/ITeS companies & freelancers
- Pakistan’s technology startups fund was announced as Pakistan’s first public-private partnership VC fund.
- Establish special technology zones (STZs) on a fast track basis by declaring CDA sectors as STZs.
- Roshan Digital IT Accounts by the state bank of Pakistan to allow freelancers and IT firms to retain 100% of their foreign income in foreign exchange.
- There are no restrictions on outward remittances from FCY accounts for PSEB registered companies.
- Resolution of double taxation of the IT sector by FBR-software declared as a service
- Exemption from capital gains tax for venture funding into startups.
- Zero tax for registered e-freelancers.
Why Should You Invest in the IT sector of Pakistan?
The IT industry in Pakistan is one of the fastest-growing industries. In Pakistan, a lot of startups are being established. E-commerce, fintech, transportation, and health-tech are a few examples. Agri-tech, educational technology, media, human resources, and travel in 2021, startups have matured. Careem, Daraz, Zameen.com, and Rozee. pk is attracting investment to Pakistan.
Pakistan has around 2,000 IT companies and call centers, and the number is increasing year after year. Pakistan has over 300,000 English-speaking IT workers with experience. They have a grip on current and upcoming IT products and technologies. Around 20,000 IT graduates and engineers are being produced each year.
Top investments in Pakistan
- Airlift -B2C- Online grocery shopping platform & logistic
- Bazaar –B2B- $30 million investment
- Tajir Sells inventory to Karyana stores
- Qisst pay (Buy now pay later) Interest-free installment for customers
- TAG -Fintech- Mobile application to open mobile wallet & get a debit card
- Credit book -Fintech- Digital ledger app
- Bridge Lynx- Transportation- Digital freight company that connects shippers with truckers & private fleets
- Dawaai -Health tech- online pharmacy
- Bookme –Travel platform- Online ticketing
- Sadapay- Fintech- mobile wallet
- Bykea An on-demand transport and logistics startup
Opportunities / Reasons to Invest in Pakistan
- Pakistan’s IT exports have increased 70% during the last three years
- Zero income tax on IT & ITeS exports
- Zero Income tax for PSEB registered IT start-ups
- 100% foreign ownership of IT & ITeS companies
- 100% repatriation of profits to foreign IT & ITeS investors
- Tax holiday for venture capital funds till 2024
- Skills availability over 1,50,000 IT professionals available in the market
- Pakistan is ranked fourth in the world for freelancing development
- Pakistan to launch 5G by Dec-2022 more advanced internet service
Being in the IT industry, we owe a debt of gratitude to Pakistan’s Prime Minister. Absoluit is sure that these reforms will help the IT industry in Pakistan. It will create a huge impact in the coming years whether it’s IT outsourcing or IT services in Pakistan. We are confident these IT reforms in Pakistan will boost up the country’s economy as well.