Due to government policies, the export income of freelancers, primarily in the IT sector, increased to a record $360 million in 2021, according to Veqar ul Islam, a member of the Prime Minister’s Taskforce on Information Technology.
Speaking at a media roundtable, he stated that the freelancing export income registered in 2020 was $256 million, and that it would increase in the current year as a result of the government’s decision to exempt freelancers and the IT industry from all taxes.
According to Vaqar, who is also the Chief Executive Officer of Jaffer Business Systems (PVT) Ltd., freelancers were not only exempted from paying taxes, but they were also made more accessible to banking services.
He also stated that various skill development programs have been launched for young people who want to work as freelancers.
The elimination of taxes on IT services will not only encourage new people to start freelancing, but it will also attract skilled professionals to take a leap of faith toward entrepreneurship and global expansion of their businesses, he said.
He claimed that the current government was working hard to promote the IT sector through its Digital Pakistan program. He stated that the government’s efforts have resulted in the growth of the IT industry and its exports in the country over the last few years.
He emphasized that the contribution of IT firms and freelancers to the national economy had increased significantly to an unprecedented level.
According to Veqar, the cost of hardware has risen significantly in recent years, owing primarily to the depreciation of the rupee against the US dollar, which is a major challenge for the local IT sector, particularly for aspiring entrepreneurs.
He stated that the IT sector’s business practices were being revolutionized, with various virtual infrastructure options such as cloud-based services being gradually adopted around the world and in Pakistan.
He also emphasized the growth of the technology startup sector, which increased by 78 percent in 2021 compared to 2020.
In order to compete with global and regional competitors in the future, Veqar urged IT companies to adopt advanced technologies and trends such as Artificial Intelligence, Internet of Things, Gaming, and Data Science.
The government has set an ambitious target of $50 billion in IT exports over the next few years if incentives such as tax breaks and the industry’s local potential are fully realized, he said.
To read our blog on “Pakistan IT Exports Reaches $420 Million in July-Aug 2021,” click here.
