Finance Minister chairs meeting of PM’s Committee on IT Export Remittances
The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a high-level meeting of the Prime Minister’s Committee on IT Export Remittances today at the Finance Division. The meeting aimed to explore strategies to enhance the flow of IT export remittances, which are vital for Pakistan’s economic growth and the development of its digital economy.
Attendees
The meeting was attended by several key officials, including:
- Minister of State for IT & Telecom, Ms. Shaza Fatima Khawaja
- Advisor to the Finance Minister, Mr. Khurram Schehzad
- Chairman FBR
- Governor SBP
- CEO Pakistan Software Export Board (PSEB)
- Secretary and Special Secretary IT & Telecom
- Member IT & Telecom
- Senior officials from the Finance Division
The Role of IT in Economic Growth
The Finance Minister emphasized the critical role the IT sector plays as a rapidly growing industry in Pakistan’s economic development. He highlighted its potential to become a cornerstone for foreign exchange generation through export remittances. “A collaborative approach, consistent policies, and targeted reforms are essential to unleash the sector’s full potential and ensure the repatriation of foreign earnings,” he stated.
Opportunities and Challenges for IT Export Remittances
The meeting focused on both opportunities and challenges within the IT sector, with particular attention given to improving the ease of capital movement to boost IT export remittances. While IT exports continue to increase, a significant portion of revenue remains unremitted. Participants discussed the need for simplified procedures, consistent tax exemptions for freelancers, and addressing issues related to the classification of remote workers and small IT firms to foster a more conducive environment for remitting earnings.
Freelancer Banking and Account Expansion
Pakistan has 2.32 million freelancers, contributing 15% to IT exports. However, only 38,000 hold bank accounts. The committee noted that 500 new accounts are opened weekly. Retaining these account holders and encouraging more to open accounts is crucial. The Governor of SBP updated the committee on efforts to address these challenges. These include simplifying account opening procedures, running awareness campaigns, improving complaint resolution, and prioritizing the IT sector in banking frameworks.
Leveraging the Roshan Digital Account and Payment Gateways
The participants discussed the potential of leveraging the Roshan Digital Account to facilitate international remittances for IT companies and freelancers. The importance of access to global payment gateways like PayPal, as well as the creation of similar domestic payment solutions, was also stressed. The discussion underscored the need to empower IT professionals and freelancers to enhance Pakistan’s global competitiveness.
Formation of Working Group for Data-Driven Policies
To ensure data-driven discussions and effective policymaking, the committee decided to form a working group comprising representatives from FBR, SBP, the IT Ministry, P@SHA, and the Freelancers Association. This group will focus on harmonizing data, identifying significant issues, simplifying processes, enhancing transparency, and ensuring the continuity of progress made by SBP and other stakeholders.
Government’s Commitment to IT Sector Growth
The Finance Minister reaffirmed the government’s commitment to fostering the IT sector as a key contributor to Pakistan’s economy. He urged all stakeholders to collaborate in overcoming challenges, promoting IT exports, and positioning Pakistan as a competitive player in the global IT industry.
