ISLAMABAD: Interim IT Minister Umar Saif announced on Wednesday that the government intends to enhance IT exports by $5 billion by training over 200,000 professionals, institutionalizing dollar retention accounts, and bringing global online payment platforms Paypal and Stripe to the South Asian country.
As many as 650,000 Pakistanis have been exporting their IT services to different countries around the globe, either through freelance work or different IT companies, helping them earn around $200-250 million per month in export remittances to the country. Pakistan’s total IT export remittances were recorded at $2.6 billion in 2022.
Despite Pakistan being home to thousands of freelancers, global online payment platform Paypal refused to extend its services to the South Asian country in 2019. Paypal refused to operate in Pakistan, saying that it was not included in the company’s three-year roadmap due to a lack of business opportunities, regulatory and compliance issues, as well as concerns around fraud and money laundering in the country.
Similarly, Stripe, an Irish-American online payment processor and payment gateway that lets customers securely pay online for products and services, is not available in Pakistan.
“The Prime Minister has approved and appreciated our plan for the Ministry of IT and Telecom,” Saif wrote on the social media platform X. “[Which includes bringing] PayPal and Stripe to Pakistan and establishing co-working spaces for 500,000 freelancers to increase their potential to an additional $3 billion per year.”
Saif said his ministry’s plan also included enhancing IT exports by institutionalizing dollar retention accounts, streamlining tax issues, and training 200,000 IT professionals to add $5 billion to IT exporters.
The minister said the government had also agreed to take steps to improve connectivity throughout the country by launching Starlink, a global satellite Internet service, in Pakistan and setting up the Pakistan Venture Capital Fund to attract international venture capitalists. This, he said, would foster a significant $1 billion investment in local startups.
He said the premier had also approved his plan to provide “incentives for local manufacturing and export of smartphones in Pakistan, as well as smartphone financing platform (so that people can easily get phones on monthly installments) to enhance local demand.”
Saif said the government would “prepare the telecom industry for the impending 5G auction within ten months by implementing active spectrum sharing, progressive taxation policies, and favorable regulations.”
According to government data, Pakistan’s IT and IT-enabled Services (ITES) export remittances fell short of the fiscal year 2022-23 target by approximately 14 percent. This shortfall can be attributed to several factors, including the failure to implement agreed-upon incentives, inconsistency in policies, and unresolved issues related to taxes and banks.