Featured Pakistan earns $161mn from IT services’ export in July, up 40% YoY

[Kabira]

ISLAMABAD: Pakistan earned $161.980 million by providing different information technology (IT) services in various countries during the first month of the ongoing financial year (FY) 2020-21.

This shows a growth of 40.90 per cent when compared to $114.960 m earned through the provision of services YoY, the Pakistan Bureau of Statistics (PBS) reported on Sunday.

During the month under review, computer services grew by 35.11pc, surging from $90.070 m last year to $121.690 million during July 2020.

Among the computer services, the exports of software consultancy services witnessed an increase of 13.48pc, from $34.036 m to $38.623 million while the export of hardware consultancy services however witnessed a decrease of 82.70pc, from $0.237 m to $0.041 m.

The export of repair and maintenance services also declined by 84.19pc from $0.329 million to $0.052 m whereas the export and imports of computer software services witnessed an increase of 8.80pc, from $30.618 m to $33.311 m.

In addition, exports of other computer services rose by 99.85pc from $24.850 m to $49.663 m.

Meanwhile, the export of information services during the month under review increased by 161.54pc by going up from $0.130 m to $0.340 m.

Among information services, exports of information related services also increased by 194.64pc, from $0.056 m to $0.165 whereas the exports of other information services also rose by 136.49pc, from $0.074 m to $0.175 m.

The export of telecommunication services increased by 61.35pc as these went up from $24.760 m to $30.950 m, data revealed.

Among the telecommunication services, the export of call centres services increased by 25.80pc during the month as its exports increased from $8.499 million to $10.692 m whereas the export of other telecommunication services also increased by 79.93pc, from $16.261 m to $29.258 m YoY, the PBS data revealed.

Pakistan earns $161mn from IT services’ export in July

ISLAMABAD: Pakistan earned $161.980 million by providing different information technology (IT) services in various countries during the first month of the ongoing financial year (FY) 2020-21.This

profit.pakistantoday.com.pk

 

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IT has so much potential but our short-sighted leaders can't see it. They must provide cheap reliable and blazing fast fiber internet all across Pakistan. The government should set up freelancing courses for the students and should collaborate with famous freelancing sites.

They should encourage local talent and provide them small loans. Look into new technologies such as blockchain and crypto and unban them. Moreover, they should help to bring big payment processors like Paypal or at-least create a local alternative.

The possibilities are endless, but they require a vision and determination from our leaders.

 

[TheSnakeEatingMarkhur]

IT has so much potential but our short-sighted leaders can't see it. They must provide cheap reliable and blazing fast fiber internet all across Pakistan. The government should set up freelancing courses for the students and should collaborate with famous freelancing sites.

They should encourage local talent and provide them small loans. Look into new technologies such as blockchain and crypto and unban them. Moreover, they should help to bring big payment processors like Paypal or at-least create a local alternative.

The possibilities are endless, but they require a vision and determination from our leaders.

I asked one of the freelancer from Pakistan about income tax and they said no one pays it... thats the reason govt isn't focusing on freelancers... what govts wants is money in treasury to keep country running and they are not willing to take risks on freelancer

 

[nahtanbob]

freelancing might be better than nothing. it is not a reliable stream of income

 

[nahtanbob]

I asked one of the freelancer from Pakistan about income tax and they said no one pays it... thats the reason govt isn't focusing on freelancers... what govts wants is money in treasury to keep country running and they are not willing to take risks on freelancer

if freelancers do not report income how can the government report numbers ?

 

[TheSnakeEatingMarkhur]

if freelancers do not report income how can the government report numbers ?

I dont think govt reports any numbers... all the income coming to freelancers is marked as FDI I think and they are marked as exempted.. but things will change from next year as exemption was for only 4 years this is last year...

And many freelancers get money delivered into foreign accounts and use Hundi to get it in Pakistan which will also cease to exist as laws created due to FATF will prevent that

 

[nahtanbob]

I dont think govt reports any numbers... all the income coming to freelancers is marked as FDI I think and they are marked as exempted.. but things will change from next year as exemption was for only 4 years this is last year...

And many freelancers get money delivered into foreign accounts and use Hundi to get it in Pakistan which will also cease to exist as laws created due to FATF will prevent that

if a freelancer brings money thorugh hawla channel or legal channel how does the government know it is from software or IT service related ??

 

[TheSnakeEatingMarkhur]

if a freelancer brings money thorugh hawla channel or legal channel how does the government know it is from software or IT service related ??

They don't know thats the problem almost 40% of freelancers choose these methods because there is no proper system here for them to get paid without paying few bucks to services by doing Hundi/Hawla they save money..

And freelance market is exempted from tax until 2020 end... after that govt will surely start charging them tax...

 

[Protest_again]

if a freelancer brings money thorugh hawla channel or legal channel how does the government know it is from software or IT service related ??

Also with freelancing, individual developer could have their payment credited to their relatives abroad and have them transferred to Pakistan with no income tax. The usual freelance work does not involve a lot of money that would invite tax troubles to the recipient abroad.

 

[RIP Pak LAW]

freelancing brings foreign remittance - govt do not mind it

 

[TheSnakeEatingMarkhur]

Also with freelancing, individual developer could have their payment credited to their relatives abroad and have them transferred to Pakistan with no income tax. The usual freelance work does not involve a lot of money that would invite tax troubles to the recipient abroad.

True

 

[nahtanbob]

I dont think govt reports any numbers... all the income coming to freelancers is marked as FDI I think and they are marked as exempted.. but things will change from next year as exemption was for only 4 years this is last year...

And many freelancers get money delivered into foreign accounts and use Hundi to get it in Pakistan which will also cease to exist as laws created due to FATF will prevent that

If the government is not reporting numbers what is the article reporting ?

 

[Sidacca]

I was freelancer earning enough but now after covid19, I lost my ONLY earnings and under huge financial pressure hence freelancing is not reliable. May Allah bless me with active income now. Help required in job seeking please......

 

[nahtanbob]

I was freelancer earning enough but now after covid19, I lost my ONLY earnings and under huge financial pressure hence freelancing is not reliable. May Allah bless me with active income now. Help required in job seeking please......

Sorry to hear about this. Freelancing is not a good long term career option