Daily Insights

Establishing Technology Zones to Facilitate IT Companies in Pakistan

By 07/06/2022 0 Comments

Information technology has achieved a central enabling role in a knowledge society and economy’s emerging dynamics. It is a driving tool of economic development. Digital growth in Pakistan is going through a rapid evolution. The rapid adoption of Information and Communication Technology (ICT) is essential for the country’s socio-economic development. In the spirit of democratic governance, revolutionary policies, and a visionary approach, the present government’s main aim is to enhance the growth of Pakistan’s economy. The efforts are paying off as the IT industry is growing in terms of the number of companies, exports, revenues, and workforce every year.

IT/ITeS Sector is one of the fastest-growing sectors of Pakistan, contributing about 1% to the country’s GDP at about 3.5 billion USD (DAWN News). It has doubled in the past four years and is expected to grow further in the next two to four years to $7 billion. IT exports were recorded to be the highest in history at $1.067 billion in the fiscal year 2017-18 (The News). Moreover, Pakistan’s software exports are currently worth $700 million, according to the State Bank of Pakistan (SBP). However, the country’s freelancers also earn another $1.2 billion in exports( The News). To Pakistan Vision 2025 and the Digital policy of Pakistan 2018, the ICT industry size is targeted to reach $20 billion by 2025.

Information technology has been impacting businesses greatly in Pakistan. However, efforts must be made to fully embrace the IT sector by establishing Special Technology Zones (STZS) to develop a high-tech economy for growth. The STZS provides special incentives to attract investors, builders, and technology companies to partner with the government. For this purpose, the government has recently announced the establishment of technology zones in different countries, including Islamabad, Lahore, and Haripur. A one-window facility will be provided to facilitate the technology companies. The technology companies were being given tax exemption besides the introduction of a 10-year tax rebate for them. Furthermore, it is expected to provide more tax exemptions to encourage IT companies. Moreover, the government is also trying to bring the world’s largest IT companies to Pakistan to boost the country’s IT sector.

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