IT sector: a key factor in economic contribution.

International research reveal that science, technology and innovation no doubt have become main factors contributing to economic growth in both advanced and developing states. In the knowledge economy, information circulates at the global level by trade in goods and services, direct investment and technology flows, and the movement of citizens. The Research also identify that the Information technology (IT) has been at the heart of economic changes for more than a decade. This sector plays a significant role, notably through contributing to rapid technological progress and productivity growth.

The Companies use information technology to organize transnational networks in response to global competition and the growing need for strategic interaction. As a consequence, multinational companies are a primary vehicle of the ever spreading process of globalization. It is also recorded that the power of economic competitiveness of any country depends on the productivity of this sector.

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IT sector in Pakistan has to harness the potential arising out of the digital shift because of the pandemic and achieve $5 billion export target through the end of FY23. The measures taken through the IT ministry was moving on the right track and it was witnessed with the rise in exports of Information Technology and IT enabled Services (ITeS) in the present fiscal year. It is recorded that the remittances from the exports of computer services and call centre services amounting to $648.940 million during July-November of present fiscal year, showing a growth of 38.16 percent over the last years.

Furthermore, the growth has come on the back of various initiatives counting abolishment of registration fees by the Pakistan Software Export Board (PSEB) registration for IT and ITeS companies, counting call centers and IT start-ups belonging to under-served areas of Pakistan. This step has led to growth of IT industry in under-developed areas of Pakistan and was bringing the IT firms from secondary and tertiary cities into the mainstream market.

Sources also recorded that incentives already given to the industry include zero income tax on IT and ITeS exports till June 2025, tax breaks for the PSEB-registered IT start-ups for 3-year, up to 100 percent foreign ownership of IT and ITeS companies, up to 100 percent repatriation of profits for foreign IT and ITeS investors, tax holiday for venture capital funds till 2024, among other incentives. Pakistan exports IT...