Prime Minister Imran Khan has approved several incentives to help the IT/ITES sector, freelancers, and startups in a historic move.
MoITT proposed tax exemption benefits, which were in high demand in the sector, as well as other fiscal and non-fiscal incentives for the industry.
“I am very grateful to Prime Minister of Pakistan Imran Khan and Federal Minister for Finance & Revenue Mr. Shaukat Tareen for unprecedented and unconditional support to IT/ITES sector and Freelancers in the country.” This was stated by Federal Minister for IT & Telecom Syed Amin Ul Haque on Tuesday.
Syed Amin-Ul-Haque also congratulated the IT sector on the PM’s tax exemption relief. He went on to say that the Federal Government’s aggressive growth targets and timely interventions have put all stakeholders on the same page in terms of meeting the desired business potential and competing in the international market.
The decision was made at a meeting chaired by Prime Minister Imran Khan on Tuesday, February 22nd. The meeting also included representatives from the Ministry of Information and Telecommunications, the Pakistan Software Export Board, the State Bank of Pakistan, the Federal Board of Revenue, the Special Technology Zone Authority, and the Ignite National Technology Fund.
Specialized Foreign Currency accounts for IT/ITES Companies and Freelancers will be introduced to meet their operational needs, resolving a long-standing issue for IT companies regarding easy inflow/outflow of Foreign Currency.
In a historic move, the Prime Minister has directed that IT/ITES companies and freelancers be allowed to keep 100% of remittances received through proper banking channels in FCY Accounts without being forced to convert them into PKR.
Furthermore, outward remittances from FCY accounts will be unrestricted for PSEB-registered IT companies and freelancers. The Prime Minister has also directed SBP to establish financing channels for the IT/ITES sector and freelancers while keeping operational architecture and industry needs in mind.
The Prime Minister also approved recommendations from the Pakistan Technology Startup Fund as part of this historic package for the establishment of a public-private partnership venture capital fund. This Fund will be established through public-private partnerships established by the Ignite National Technology Fund.
To read our blog on “PM Imran Khan declares Tax-Free status for registered freelancers,” click here.
