IT industry can squeeze current account deficit: Faizul Haq.

LAHORE -- Information Technology is the only industry in Pakistan having a trade surplus of 77 per cent can squeeze down the country's current account deficit from FY-23's projected US $10 to 12 billion to US $5 billion by financial year 2026.

A renowned economist, Faizul Haq said in a media statement here Sunday that replacement of tax holiday for the IT industry till 2025 with tax credit scheme had spoiled the opportunity in IT exports of up to US $500 million in FY-22.

It is pertinent to note that IT exports posted a growth of a whopping 47 per cent in FY-21 and 24 per cent in FY-22, collectively registering 87 per cent growth rate in just two-year from US $1.4 billion in FY-20 to US $2.62 billion in FY22.

Faizul Haq suggested that the government should extend a special export finance scheme (EFS) to IT companies; offering a discount of 600 - 700 basis points (bps) vis-a-vis policy rate; i.e. 8-9 per cent EFS rate for IT exporters. This would not only enable the IT companies to achieve the FY-23 export target of US $3.5...