ISLAMABAD: Pakistan’s IT industry has been identified as a potential powerhouse for the economy but it faces significant roadblocks hindering its growth. Experts suggested that by tackling key challenges head-on, the industry can boost the country’s exports and investment.
Asim Shahryar Husain, CEO Ignite, talked about the main objective of increasing the earning of dollars through IT exports and increasing the number of freelancers in Pakistan.
“The startups in Pakistan face the issue of not being able to open forex accounts (used to hold and trade foreign currencies), which forces the investors to invest abroad rather than in Pakistan. This leads to a reduction in forex inflow, as the required initial investment has trickled down over a couple of years,” he said.
Asim suggested that if the State Bank of Pakistan (SBP) allows freelancers and startups to open forex accounts, they will be able to retain their investments in dollars. This will encourage more inflow to Pakistani startups and freelancers, as they will be able to cash up at the exchange rate that existed at that time. Additionally, it will make repatriation and international payments to vendors much easier.
The Ignite CEO believed that instead of burdening freelancers with hefty taxes, the government should consider providing them with cash rebates.
He suggested that if a freelancer or startup brings in more remittances, they should be eligible for rebates based on different slabs.
For instance, if an investor brings in $1,000, they should be entitled to a 1% rebate. Similarly, if an investor brings in $2000 USD, they should receive a 2% rebate. ”
This incentive, according to Asim, will attract more dollars to Pakistan and boost its economy. He believed such a scheme will encourage investors to bring more money to the country, thus creating more job opportunities and driving economic growth. –INP
