Raza Khan

Pakistan’s IT (information technology) exporters have called upon the government to formulate a comprehensive plan to boost exports. “IT industry needs incentives from the government in order to create confidence among freelancers and young entrepreneurs,” Zohaib Khan, Chairman of Pakistan Software Houses Association (P@SHA), said while talking to WealthPK. He said that the current decline in IT exports has to be stopped first. “Our first target should be catching up with the export numbers of last fiscal year,” Zohaib said.

Pakistan’s IT exports declined by 23.29% in April 2023 to $191 million from $249 million during the same month of last year. The IT exports also reduced by 14.73% in April when compared to the exports of the preceding month. Pakistan’s total IT exports during the first 10 months (July-April) of the current fiscal year (2022-23) declined by 3% to $2.133 billion from $2.199 billion during the corresponding period of last fiscal year.

Zohaib said that IT professionals and freelancers in Pakistan have grown in large number, and they can enhance the country’s exports if given due incentives and tax breaks. He said that the government had announced a zero-tax policy for the IT industry some time ago. However, the decision is yet to be implemented. “Delay in tax relaxations is causing anxiety among IT exporters,” he added. Zohaib was of the view that the freelance industry was the only sector which works effortlessly, conveniently and with low resources.

“A freelancer just needs a laptop and successional internet provision, which is not so much costly,” he maintained. The P@SHA chairman called upon the government to fix a swift and convenient process of documentation for registration of freelancers. Zohaib said that the registered freelancers should be allowed to retain foreign exchange up to a value of $100,000 in order to incentivise them.

“Otherwise, they would lose the value of their earnings due to the volatility of foreign exchange rates,” he argued. He added that the incentives would encourage the freelancers to bring the foreign exchange currently parked offshore to Pakistan. He said the US and Europe are potential markets where freelancers can make million-dollar codes while being at their homes. “Freelancers just seek initial support from the governments whereas the rest of the work is done by themselves,” Zohaib said.

Dr Sohail Naqvi, former vice-chancellor of the Lahore University of Management Sciences (LUMS), has recently set up Knowledge Streams, a startup to train IT graduates for the global IT industry. Dr Naqvi said his venture will help graduates upgrade their technical skillsets with respect to computer languages that are in high demand globally. “More importantly, it will help them learn soft skills like effective communications, teamwork and ethics,” he added.

Dr Naqvi said a majority of Pakistan’s IT graduates are underemployed or not unemployable due to lack of advanced skills. Their starting average salary is $2 an hour versus $70 an hour in advanced economies. “Our IT graduates suffer because they lack confidence. They don’t know how to market themselves,” Dr Naqvi said, adding that IT exports can jump 10 times in five years with the right kind of training.

Credit: Independent News Pakistan-WealthPk