ISLAMABAD (INP): Pakistan Software Export Board (PSEB) has received $53.422 million from the Ministry of Information Technology and Telecommunications (IT & Telecom) to provide monetary incentives to IT companies and freelancers aiming to boost the country’s exports.
According to a WealthPK’s report, the Ministry of IT & Telecom has planned to facilitate a high proportion of freelancers and IT companies to achieve a $3.5 billion export target by the end of the current fiscal year.
The cost of registering a call center and IT company is reduced from $5,000 to $550, while the ministry will pay the remaining $4,450 to the PSEB.
The PSEB will provide cash incentives to companies with positive export remittances in FY2020-21. Companies with zero export remittances in FY2019-20 will also be rewarded at a financial incentive rate of 2%.
While recognising new and current firms who use regular banking channels to receive export remittances, this step will also indicate to established enterprises with long-standing histories of following formal procedures that their efforts are valued and acknowledged more.
Muhammad Shoaib Aslam, Domestic Business Facilitation Officer at the PSEB, said that the IT & Telecom sector is expected to achieve the export target of $3.5 billion by the end of the current fiscal year, and is expected to reach its set target of $5 billion in remittances within the next three years.
“The PSEB has launched new training and technology certification initiatives for the local freelancers to generate good income by learning freelancing skills,” Shoaib said.
The approach of employees and corporates has changed drastically in Pakistan due to the evolution of occupation and technology enhancement. Freelancers have registered remarkable growth in numbers and income during recent years. Telecom infrastructure expansion across the country has played a major role in freelancers’ development.
Freelancers have changed the mindset of individuals to take initiative for their own business instead of working for a corporate. Now a huge portion of economic growth depends on remittances (inward) against IT services, consultancy, and export of software.
To promote freelancing, the Ministry of IT & Telecom has proposed tax exemptions for freelancers which would go on for the next 10 years. According to the ministry, such steps will boost exports and create more job opportunities.
Working freelance in Pakistan has become increasingly popular due to the quality of work and cost-effectiveness compared to other competing countries. Pakistani freelancers are spread across various fields like content management, search engine optimisation, social media management, logo designing, creative design, and website development, among others.
According to WealthPK, during the period July-December FY2021-22, IT & Telecom net exports totaled $972 million against $681 million during the same period of last fiscal year.
With over 6,000 IT companies, Pakistan is one of the most financially attractive countries to outsource tech jobs in the world. In FY2020-21, the freelancing industry generated $0.5 billion in revenue. One of the significant benefits of freelancing is that one can earn money in dollars.
When people make money from abroad, it benefits the individual and helps strengthen the local currency.
Surprisingly, 60% of Pakistani freelancers are between the ages of 24 and 30, and they need an appropriate work environment in order to compete in foreign marketplaces.
Even established freelancers confront a variety of difficulties. When a freelancer works for an international firm, he or she has several challenges due to the lack of infrastructure in Pakistan that can assist them in receiving prompt payment.
It is an encouraging development that the government has introduced new incentive programs for freelancers, call centers, and IT companies across all provinces. The PSEB expects that Pakistan will eventually become the world’s third-biggest freelancing country, raising its citizens’ living standards and gross domestic product (GDP).