Pakistan Telecom and IT updates

[ghazi52]

Objective behind inviting Bill Gates was to involve him in Pakistan's IT sector: PM Imran​

Dawn.com
February 21, 2022 -

Prime Minister Imran Khan on Monday said that the interest behind inviting Microsoft co-founder Bill Gates to Pakistan was to somehow involve him in the country's IT sector, adding that there would be good news in this regard in the coming days.

He expressed the views while addressing the E-Commerce Pakistan Convention in Islamabad where he was the chief guest. According to Radio Pakistan, the prime minister inaugurated the e-commerce portal to promote and facilitate freelancers and businesses in Pakistan.

He went on to say that he invited Gates to Pakistan as the aim was to involve him in the country's IT sector. "So I will not make an announcement right now, but I will deliver good news in the coming days."

 

[ghazi52]

Freelancers: MoITT prepares incentive package​

Tahir Amin
22 Feb, 2022

ISLAMABAD: The Ministry of Information Technology and Telecommunication (MoITT) has prepared a package of fiscal and non-fiscal incentives for the freelancers including the proposal of reduced sales tax rate, not exceeding two percent, as well as, income tax holiday on exports income/ revenue/ receipts till 2030 and fast-track and simplified opening of foreign currency bank accounts to create a favourable business environment.

The ministry has shared the draft of incentives package with the Finance Ministry for inclusion in the finance bill and the State Bank of Pakistan (SBP) and the SECP regulations.

Sources revealed to Business Recorder that the MoITT considers it is necessary to re-align the government strategies to attract a reasonable chunk from global spending on outsourcing and freelancing services in Pakistan. This will help create thousands of new jobs for freelancers in different sectors in line with the current government policy of creating high-end and well-paying white-collar jobs for youth employed in the digital economy.

The ministry has admitted that specific government incentives for freelancers are lacking, and there is a need to consider incentives for freelancers to create a favourable business environment.

It is proposed that incentives available for IT/ ITes sector should be applicable to freelance sector, as well.

Fiscal incentives for freelancers are recommended in consultation with the working group of prominent freelancers and freelancing community representatives. The MoITT will recommend these proposals for inclusion in the relevant documents such as Finance bill and SBP and the SECP regulations, etc., after due process. There would be income tax holiday on export income/ revenue/ receipts of freelancers duly registered with the PSEB till 2030, subject to receipt of income/ revenue through formal banking channels in the specific purpose codes assigned by the SBP.

There is proposal of introduction of incentivized registration fee package for freelancers by the PSEB and access to the PSEB programmes and initiatives, including fee and subsidized training, certifications, subsidized office space at Software Technology Parks (STPs) across the country and access to international marketing and matchmaking opportunities. It is proposed for the SECP to introduce a 20 percent registration fee discount for the PSEB-registered freelancers, if they opt to register a single member company.

It is proposed to make available collateral-free loans up to Rs1 million to the PSEB-registered freelancers through commercial banks and financial institutions at subsidized rates.

It is proposed that the facility of subsidized health and life insurance be made available to the PSEB-registered freelancers under existing and future government and private initiatives. It is proposed that the PSEB-registered freelancers will be included in any home loan schemes under the existing and government and private initiatives subject to providing a record of a minimum of 5 years of freelancing exports remittances of more than $10,000 per annum. Such home loan facilities shall be provided to these qualified freelancers at a subsidized loan rate.

It is also proposed for the provinces and the federal capital revenue boards to implement a reduced sales tax rate, not exceeding 2 percent against the local services revenue earned by the PSEB-registered freelancers. It is further proposed that this sales tax payment shall only be due at invoice month end plus 60 days.

Among the non-fiscal incentives, it is proposed that visa facilitation shall be provided for the PSEB-registered freelancers whose export income/revenue for the last three years exceeds $5,000 for each year and it remitted through formal banking channels.

Fast-track and simplified opening of foreign currency bank accounts for the PSEB-registered freelancers is also amongst the proposals including retention of a certain percentage of foreign exchange in these bank accounts.

It is proposed to establish technology business branches of commercial banks in at least six Pakistan cities with help of the SBP and commercial banks in providing relevant training for the staff of these branches.

It is proposed to establish facilitation desks at the PSEB offices and the PSEB-operated Software Technology parks for freelancers to quickly resolve their issues pertaining to taxation, banking, intellectual property rights, Voice Over IP white-listing, Virtual Network Access (VPN), or any other legal or commercial matters.

It is proposed that the Revenue Boards for the PSEB to establish a free centralized VPN gateway service which Pakistan Telecommunication Authority will white-list to provide services to verified freelancers registered with the PSEB. It is proposed that IP white-listing will be available for voice over IP (VOIP) traffic for the PSEB-registered freelance, where the VolP traffic must not exceed 200kbps. It is proposed to ensure the provision of Committed Information Rate (CIR) internet bandwidth service by the ISPs/ telco operators packages under work from home package with a minimum of 20 Mpbs connection at subsidised process to be made available to the PSEB-registered freelancers.

Copyright Business Recorder, 2022

 

[ghazi52]

 

[Ali_Baba]

Pakistan can achieve this for sure - it has to make sure it education standards for Computer Science degrees are 3 years at a minimum and recognised internationally.... this nonsense of 2years Bsc degrees has to stop ASAP. The rest is stable internet with large bandwidth and office spaces for outsourcing for which it is building IT Parks.

The last part of course is security - a secure place for companies to invest in.

 

[ghazi52]

....
Prime Minister Imran Khan in his address to the nation announced these announcements for IT and industrial sector....

- Announcements for IT Sector:

100% tax exemption for both companies and freelancers
100% foreign exchange exemption
100% exemption from Capital gain tax for investments in IT start ups.
lllll

 

[khansaheeb]

View attachment 817896

yes and CPEC will reach $5Trillion in a few years.

 

[Ali_Baba]

....
Prime Minister Imran Khan in his address to the nation announced these announcements for IT and industrial sector....

- Announcements for IT Sector:

100% tax exemption for both companies and freelancers
100% foreign exchange exemption
100% exemption from Capital gain tax for investments in IT start ups.
lllll

Excellent news! Pakistan is making the right moves and getting there.

 

[ghazi52]

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Xiaomi to inaugurate production facility in Pakistan on March 4​

By Bilal Hussain
March 01, 2022

Xiaomi is a global technology giant with a current standing of 334 in the Fortune Global 500 companies.-File photo

KARACHI: Xiaomi’s mobile device manufacturing facility has scheduled an inauguration ceremony on March 4 to kick off production in Pakistan to generate a likely sales volume of 550 million in the country.

Xiaomi, one of the largest smartphone companies in the world, would begin production in collaboration with Select Technologies (Pvt) Limited, a wholly owned subsidiary of Air Link. The production facility has been established at Quaid-e-Azam Industrial Estate, Kot Lakhpat.

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The Chinese giant with the local partner is expected to generate a sales volume of 550 million annually in Pakistan. “This production facility is a step forward in the direction of PM’s vision of ‘Make in Pakistan’ and will have a huge impact on Pakistan's economy resulting in export of locally produced Xiaomi mobile phones,” read the company's statement on the Pakistan Stock Exchange.

President Pakistan Dr Arif Alvi is expected to inaugurate the production facility near Lahore. Last year in November, Air Link announced that it would be partnering with Xiaomi, which would add approximately $450 million annually in top line revenue numbers.
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[ghazi52]

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Telecom sector posts record Rs644b revenue in FY21​

Secures $202 million FDI, contributes Rs226b to national exchequer
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Usman Hanif
March 02, 2022

The telecom sector posted the highest-ever revenue of Rs644 billion in fiscal year 2020-21 as compared to the revenue of Rs592 billion in the previous year.

The sector attracted $202 million in foreign direct investment (FDI) and contributed Rs226 billion to the national exchequer, according to Pakistan Telecommunication Authority’s (PTA) annual report for 2021.

During the year, an amount of $486 million was generated through spectrum auctions and licence renewals in the country.

Broadband service subscribers surged to 110 million, the report said, adding that around 50% of the country’s population subscribed to broadband, with bulk (49%) consisting of mobile broadband connections.

Broadband subscribers touched the milestone of 100 million in March 2021, it said.

Regarding the Device Identification, Registration and Blocking System (DIRBS), the report mentioned that the system proved productive for positioning Pakistan as a major manufacturer of mobile devices.

“PTA has so far issued mobile device manufacturing authorisations to 30 companies, attracting investments to the tune of $120 million, producing 10.1 million smartphones in 2021 and creating 2,000 jobs,” the report said.

Talking to The Express Tribune, SI Global CEO Noman Ahmed Said was of the view that the increase in revenue was expected, given the surge in use of telecom services in the country in recent times.

“It is heartening to see that the telecom sector secured $202 million in FDI,” he said. “This should remain our goal for 2022, to secure even more FDI and expand our operations locally as well as internationally.”

He emphasised the need for setting long-term goals, which “must be structured in such a way that they can be achieved”.

According to ICT expert Parvez Iftikhar, the telecom revenue in 2020-21 increased almost 9% in Pakistani rupees.

In dollar terms, the revenue increased around 7% over the previous year, “though they are still nearly a billion dollars less than what they were in 2017-18”, he said.

“Surprisingly, despite the increase in overall revenue, the contribution made to the exchequer (Rs225.8 billion) is lower than the previous year (Rs290.1 billion),” he noted.

He underlined that telecom and ICT (information and communications technology) services had spread nationwide, covering over 89% of the population with teledensity reaching 87% and cellular mobile penetration touching 86%.

Published in The Express Tribune, March 2nd, 2022.

 

[ghazi52]

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IT sector, freelancers and startups: FBR ‘drafting’ ordinance aimed at extending incentives​

Sohail Sarfraz
19 Mar, 2022

ISLAMABAD: The Federal Board of Revenue (FBR) is drafting a Presidential Ordinance to extend grant incentives, including tax exemptions, to facilitate the IT sector, freelancers and startups as announced by the Prime Minister Imran Khan.

It is learnt that that the tax officials are in the process of drafting a Presidential Ordinance to facilitate the IT sector. The tax exemption benefit was the biggest demand of the sector. If the Ordinance is promulgated before next fiscal year, this Ordinance would only give tax benefits and no new taxation, they added.

Prime Minister Khan had announced a complete tax exemption for information technology (IT) companies and freelancers, reverting the earlier status of the IT industry as tax-exempt. The package included 100 per cent capital gains tax exemption will be given for investments in IT startups, besides easing foreign exchange restrictions for the industry.

The prime minister has directed to allow IT/ITeS companies and freelancers to retain 100 percent amount of remittances received through proper banking channels, in FCY Accounts without any compulsion to convert them into PKR.

Furthermore, there will be no restriction of outward remittances from FCY account for PSEB-registered IT companies and freelancers.

The prime minister has also directed the SBP to introduce financing streams for IT/ITES sector and freelancers keeping in view operational architecture and industry needs for these sectors.

MoITT had prepared a package of fiscal and non-fiscal incentives for freelancers including the proposal of reduced sales tax rate, not exceeding two percent, as well as income tax holiday on exports income/revenue/receipts till 2030 and fast-track and simplified opening of foreign currency bank accounts to create a favourable business environment.

The FBR had issued a clarification on February 8, 2022 that no Ordinance is coming to withdraw further sales tax exemptions before Finance Act, 2022.
The FBR had clarified that the review of the tax laws is an ongoing exercise which the FBR undertakes in routine.

Copyright Business Recorder, 2022

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[ghazi52]

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Advancing their mission to promote the startup ecosystem of Pakistan, Huawei Cloud signed a memorandum of understanding (MoU) with National Incubation Centers (NCI) in Islamabad, Lahore, and Karachi, during the Huawei Cloud Summit Middle East in Dubai.

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[ghazi52]

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ICT export remittances including telecommunication, computer and information services during the first nine months of the current fiscal year 2021-22 surged to $1.948 billion at a growth rate of 29.26 percent in comparison to $1.507 billion during the same period in the fiscal year 2020-21.

According to the Ministry of Information Technology and Telecommunication data, in March 2022, the ICT export remittances stood at $259 million at a growth rate of 23.92 percent when compared to $209 million reported for the month of March 2021. Also, $58 million is higher than export remittances of $ 201 million during the previous month of February 2022.

The net exports for the period July 2021 to March 2022 during the fiscal year 2021-22 are $1.472 billion which is 75.56 percent of $1.948 billion in exports.

Last year, for the same period the net exports were $1.126 billion which was 74.72 percent of US$ 1.507 billion in exports.

The Ministry of Information Technology and Telecommunication has set a target of $3.5 billion for the current fiscal year.

Copyright Business Recorder, 2022

 

[ghazi52]

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The Universal Service Fund (USF) is set to launch a fibre-optic project for Gwadar to bring 4G compatible high speed internet and telecom services to the region. The project is expected to be completed by the middle of next year.

The USF has finalised paperwork for several projects, including 400km fibre-optic project in Gwadar and 4G services in the Loralai area of Balochistan, apart from upgrading data services to 4G in Vehari, Lodhran, Sialkot, Narowal, Nankan Sahib and Sheikhpura of Punjab.

Sources in the Ministry of Information Technology said all these projects were in the process of finalisation and would start work after getting approvals from the USF board. “Tentative date to start these projects is set for the last week of June and will be completed in 12-18 months,” the official said.

Apart from residential and commercial districts, the USF has an extensive plan to cover the national road arteries. The project regarding IT and telecom services on 309km Faisalabad-Multan M4 Motorway is also likely to be launched next month.

About the highways and motorways project, Minister for IT and Telecom Syed Aminul Haque told Dawn that USF’s motorways and national highways programme had achieved broadband coverage on more than 1,929km of unserved road segments across the country.

“We are committed to providing uninterrupted mobile network on all major highways of the country because it enhances safe travel, improves the local economy and eventually boosts the IT and telecom sector,” the minister said.

He added that infrastructure development for uninterrupted high speed mobile broadband services was essential on national highways as it was one of the prerequisites for the country to launch 5G service in future.

The USF projects on Lahore-Abdul Hakeem M3 Motorway and 392km Multan-Sukkur M5 Motorway will be completed by the end of this year.

Makran coastal highway and NH 50-70 in Balochistan have already been covered with telecom services, but work on some part of N-25 (RCD Highway) and N65 (Quetta-Jacobabad Highway) has stalled due to local political issues and the authorities were not giving NOC to install telecom towers.

Haaris Mahmood Chaudhary, the Chief Executive Officer of USF, said the notables of the area, including elected representatives of Balochistan, had been approached to help resolve the matter so that all mainstream highways could be provided coverage.

The upcoming projects of the USF included powering of telecommunication site through solar energy, especially in remote areas where the supply of fuel to power generation is difficult.

Since 2018, the USF has launched 56 projects amounting to more than Rs52 billion for providing optic-fibre cable and broadband services across the country.

The USF is a subsidiary of the IT ministry tasked with expanding internet and telecom services to remote areas of the country where telecom companies and internet service providers do not enter as such areas are not commercially viable.

The fund consists of 1.5 per cent of adjusted revenues of telecom operators and various contracts for development of IT and telecom infrastructures are awarded through auction and the amount is paid from the fund.

Published in Dawn, May 3rd, 2022

 

[ghazi52]

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Information Technology (IT) export remittances including telecommunication, computer, and information services from July 2021 to April 2022 have surged to an all-time high of $2.198 billion growing by 29 percent in comparison to $1.7 billion during the same period in FY 2020-21.

However, ICT export remittances declined by 4 percent on a month-on-month basis in April 2022 when compared to $260 million in March 2022.

Prime Minister Shehbaz Sharif has said that Pakistan offers huge opportunities for investments in the technology sector and the government intends to increase IT exports from $1.5 billion to $15 billion in the coming years.

According to the State Bank of Pakistan data, in April 2022, ICT export remittances grew to $249 million up by 29 percent, compared to $193 million reported in April 2021.

 

[ghazi52]

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The telecommunication industry attracted foreign direct investment of $6.1 billion from July 1, 2018, to March 30, 2022.

The number of active mobile SIMs reached 193 million by March 2022 due to reforms in the telecom sector, and mobile and fixed Broadband consumers’ numbers saw a 39.4 percent increase.

Revolutionary steps had been taken in the information technology and telecommunication sector in the last three years in Pakistan and they're bearing fruit now.