slamabad: Federal Minister for Finance and Revenue, Muhammad Aurangzeb, chaired a high-level meeting of the Prime Minister’s Committee on IT Export Remittances at the Finance Division. The meeting focused on strategies to enhance the flow of IT export remittances, a critical component of Pakistan’s economic growth and digital economy.
Key discussions revolved around leveraging the Roshan Digital Account to facilitate international remittances for IT companies and freelancers. Participants also highlighted the urgent need for access to global payment gateways like PayPal and the development of local payment solutions to empower IT professionals and freelancers, thereby improving Pakistan’s global competitiveness.
The meeting noted that Pakistan is home to 2.32 million freelancers, who contribute 15% of the country’s IT exports. However, only 38,000 freelancers currently hold bank accounts. While the State Bank of Pakistan (SBP) reported that 500 new accounts are being opened weekly, retaining these account holders and encouraging others to open accounts remains a significant challenge. The Governor of SBP briefed the committee on measures taken to address these issues, including streamlining account opening procedures, launching awareness campaigns, improving complaint resolution mechanisms, and prioritizing the IT sector in banking frameworks.
To ensure effective policymaking, the committee decided to form a working group comprising representatives from the Federal Board of Revenue (FBR), SBP, the Ministry of IT, Pakistan Software Houses Association (P@SHA), and the Freelancers Association. This group will focus on harmonizing data, identifying key issues, simplifying processes, enhancing transparency, and ensuring continuity of progress made by SBP and other stakeholders.
Finance Minister Muhammad Aurangzeb emphasized the IT sector’s critical role in driving Pakistan’s economic growth. “The IT sector has the potential to become a cornerstone of foreign exchange generation through export remittances. A collaborative approach, consistent policies, and targeted reforms are essential to unlock its full potential and ensure the repatriation of foreign earnings,” he stated.
The meeting also addressed challenges related to the ease of capital movement for IT businesses. While IT exports are steadily increasing, a significant portion of revenue remains unremitted. Participants stressed the need for simplified procedures, consistent tax exemptions for freelancers, and addressing classification issues for remote workers and small IT firms. These measures aim to create a more favorable environment for IT businesses to remit their earnings back into the country.
The Finance Minister reaffirmed the government’s commitment to fostering the IT sector as a vital contributor to the economy. He urged all stakeholders to work collectively to overcome challenges, promote IT exports, and position Pakistan as a competitive player in the global IT industry.
The meeting was attended by Minister of State for IT & Telecom Ms. Shaza Fatima Khawaja, Advisor to the Finance Minister Khurram Schehzad, Chairman FBR, Governor SBP, CEO of Pakistan Software Export Board (PSEB), Secretary and Special Secretary
