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IT exports cross record $2bn mark

TheSnakeEatingMarkhur

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IT exports reached $2.12bn in 2020-21 as against $1.44bn in the preceding year, according to data released by Commerce Ministry on Monday. — AP/File
ISLAMABAD: Pakistan’s exports of information technology grew by 47.4 per cent to cross the $2 billion mark for the first time in the country’s history in the outgoing fiscal year.

In absolute terms, the IT exports reached $2.12bn in 2020-21 as against $1.44bn in the preceding year, according to data released by Commerce Ministry on Monday.

“I want to congratulate our IT exporters for crossing the $2bn export mark for the first time in our history,” Commerce Adviser Razak Dawood said in a statement on Monday.

Mr Dawood said he always believed in the abilities of IT professionals and entrepreneurs. “You have done a remarkable job and I encourage you to market your exports even further to achieve more”, the adviser further said.


The government has offered several incentives in taxes and procedures in the budget 2021-22 to encourage IT exports, he said.

Meanwhile, the commerce adviser briefed Prime Minister Imran Khan on the progress of bilateral cooperation and trade agreements after his visit to Uzbekistan and the prospects for positive results from investors.

An official announcement said that Mr Dawood also briefed the premier on the strategy for the forthcoming visit to the rest of the Central Asian states, particularly Tajikistan, and the implications for investment and trade.

He also briefed the prime minister on Board of Investment (BoI) meeting scheduled for this week and an expected session with various chambers of commerce this month.


PM Khan welcomed the strengthening of trade relations with the Central Asian states and stressed that Pakistan has the potential to provide sea access to the entire region, including these states.

Published in Dawn, July 27th, 2021

 

Ghessan

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i would say too slow we are going. it must have been work on war footing to increase IT exports which is not the case.

actually we do not fail at skill level particularly in IT sector but we do fail at management and marketing skills and this is sad state of affairs.
 

Stealth

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More than 80% of IT services providers r tax exempt… there is zero tax on it including free lancing (foreign income) tu 2BN he hoge na actual may 22-15B or maybe more than that..
 

Enigma SIG

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More than 80% of IT services providers r tax exempt… there is zero tax on it including free lancing (foreign income) tu 2BN he hoge na actual may 22-15B or maybe more than that..
Doesn't work like that.
Banks tag IT incomes separately so they can be tracked even when not taxed.
 

TheSnakeEatingMarkhur

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More than 80% of IT services providers r tax exempt… there is zero tax on it including free lancing (foreign income) tu 2BN he hoge na actual may 22-15B or maybe more than that..
True but this tax examption given by PMLN and extended by PTI is a good thing. It is helping those companies to grow faster and by 2025 we will In Sha Allah have an industry providing good revenue in terms of Taxes.
 

RealNapster

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More than 80% of IT services providers r tax exempt… there is zero tax on it including free lancing (foreign income) tu 2BN he hoge na actual may 22-15B or maybe more than that..
If an income without any tax is 2 billion dollars, how can it be 15-22 Billion dollars with taxes ? What you implying is 750-1100% tax. So if someone make 1 dollar he pay 7.5-11 dollars tax on that dollar. Bhai wah
 

Stealth

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If an income without any tax is 2 billion dollars, how can it be 15-22 Billion dollars with taxes ? What you implying is 750-1100% tax. So if someone make 1 dollar he pay 7.5-11 dollars tax on that dollar. Bhai wah

I am not talking about TAX... I am talking about INCOME/Earnings through IT Services... My brother earns $60-70,000 USD / Year and all of his income is LEGAL and TAX EXEMPT. He has NTN and properly files his tax every year (declared everything whatsoever he has) but again there is no tax on him. When I was in Pakistan, other than my Local income, I have earned more or less a similar amount (through freelancing services) and that was totally tax-exempt. There is a ZERO tax on IT foreign income in Pakistan.
Doesn't work like that.
Banks tag IT incomes separately so they can be tracked even when not taxed.
So where I said it's not traceable?
 
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RealNapster

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I am not talking about TAX... I am talking about INCOME/Earnings through IT Services... My brother earns $60-70,000 USD / Year and all of his income is LEGAL and TAX EXEMPT. He has NTN and properly files his tax every year (declared everything whatsoever he has) but again there is no tax on him. When I was in Pakistan, other than my Local income, I have earned more or less a similar amount (through freelancing services) and that was totally tax-exempt. There is a ZERO tax on IT foreign income in Pakistan.


So where I said it's not traceable?
Or IT industry is not in a position to earn you billion in taxes. Let it grow. We can tax it any time. The world is literally bigging IT companies and giving them incentives to establish businesses in their countries. We should not scare them. Give it some time
 

Stealth

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Or IT industry is not in a position to earn you billion in taxes. Let it grow. We can tax it any time. The world is literally bigging IT companies and giving them incentives to establish businesses in their countries. We should not scare them. Give it some time
IT services providers (employers) excempt from tax since Musharaf era.... 20 saal may hamnay kya karlya hey jo ub mazeed koi anooka incentive daykar hamany maarna hey atleast Govt ko tu koi faida ho tax ke mad may... kamazkam 2 BN pe jo EXPRT pe tax lya hey jokay almost Na honay kay brabar hye kamaazkam woh tu kuch Govt leti ... phir kudhe Govt RR daalti hey kay loog TAX nahi detay ... jahan lay sakhtay ho wahan tu lo..
 
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mourning sage

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Human resource is a huge bottleneck in the IT sector. People here might disagree but the top IT exporters have a huge crop of computer science experts with at least 3-5 yrs of experience. Pakistan hasn't reached that stage. I was listening to the reviews of some of the top CEOs in Pakistan within the IT sector and they were lamenting the fact that Pakistan has not been able to increase the quality and quantity of individuals who can work in the IT sector. This will slowly and gradually change.
 

ziaulislam

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i would say too slow we are going. it must have been work on war footing to increase IT exports which is not the case.

actually we do not fail at skill level particularly in IT sector but we do fail at management and marketing skills and this is sad state of affairs.
Yeah 50% growth is too slow
Had it been nawaz we would have seen 1000% growth in this new sector as no other regional countries do IT export and there is no competition.

Unfortunately IT didnt exist in my beloved leader time. (2013-2018) otheriwse u would have seen the difference

Incompetent govt
 

Ghessan

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Yeah 50% growth is too slow
Had it been nawaz we would have seen 1000% growth in this new sector as no other regional countries do IT export and there is no competition.

Unfortunately IT didnt exist in my beloved leader time. (2013-2018) otheriwse u would have seen the difference

Incompetent govt
you are going from this end to another with what, i don't understand what you want to say.

there is two criteria to look into something:
1. playing with figures like you just did (one of the bad things people are taught by politics)
2. measuring figures from economic point of view instead of political

it is easy to say 50% growth, but of what? if it is 50% of a billion or a two, it is not something considerable. well if it was 50% of something considerable, we say ok we are doing good.

there is something that is called economics.
we must understand that we lack in every aspect when we talk about economy, we need to improve at management, execution, marketing, administration level, simplifying regulations, improving cooperation among sectors, combining short term & long term export policies above all sustainability.

bring as much investment as you want, until we do not improve on those things we will never be able to professionally run and be competitive in the world.

regional countries who were doing their efforts years back we have to study them how they attain this level and stand where they are now but we were sleeping. now when we have started which i am hearing since 10 years, why are we still at 2 billion mark which is just achieved?

we also learn to continue policies good for the country of the earlier govt by the current without any prejudice, we will start developing.

regardless of who in the govt, i have no interest in politics and give a damn when it is dirty, i have my own reservations towards country.
 

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