The measures to increase IT exports are not being supported by State Bank of Pakistan (SBP) and FBR, according to Zohaib Khan, chairman of the Pakistan Software Houses Association (P@SHA), who has raised his grave worries.
He continued by saying that the high-level committee overseeing the nation’s digital economy is under the leadership of the Prime Minister and includes Chairman P@SHA as a member.
According to Zohaib Khan, PM has instructed SBP to ensure that commercial banks permitted 35% retention of foreign currency in special foreign currency accounts (FCYs) at P@SHA’s request.
To eliminate any discretion used by the banks, this facility was made essential for them.
However, even if businesses do not want to hold onto foreign currency, commercial banks have made the capability necessary for them as well.
Due to the uncertainty of the policy and its implementation, this has once again caused panic in the business.
In addition, SBP stated a deadline of March 31, 2023, which is too soon for the facility to be implemented and adopted by banks and exporters, much alone evaluated fairly and industry trust established.
The regulatory agencies hardly ever comply, notwithstanding the prime minister’s pledge to see that corrective policy measures are implemented.
For example, FBR has begun sending letters to IT companies regarding super tax, and that too with very tight deadlines.
The notifications’ stated date violates the law, which has once again caused confusion and alarm in the software industry.
The policy changes suggested by P@SHA and the IT sector must be carried out in full compliance with word and spirit if the Prime Minister’s set goal is to be met.
Implementing policies consistently is essential for increasing Pakistan’s economic growth as well as the exports of the IT & ITeS sector.
Pakistan must establish itself as a desirable location for technology. The relevant departments’ consistent lack of assistance is detrimental to the Prime Minister’s stated goal of increasing exports.
The export remittances will only decline in a situation where there is no assistance or facilitation, despite assurances from the highest authority, let alone preserve the status quo.
It must be emphasized that the only industry that has the capacity to help Pakistan’s economy recover during this time of economic crisis is IT & ITeS.
The sector proposes a rise in IT exports and the influx of money in the form of investments—both of which are vital to Pakistan’s economy—to close the current account gap.
Chairman P@SHA statement
Chairman of P@SHA Zohaib Khan claims, “IT exporters are young, energetic, highly skilled and supremely motivated professionals; and taxation authorities must not treat them with their usual arm-twisting tactics or must not entangle them in unnecessary regulatory hassles. Instead, the way forward for the growth of Industry as well as for the progress of Pakistan is to ensure ease of doing business.”
To read our blog on “P@SHA sent member companies as delegates in CES 2023,” click here.
