KARACHI: Government is being urged by leaders in Information Technology (IT) sector to improve its policies. Business people believe sector holds high potential to emerge as leading export earner and can help fix ongoing balance of international payment crisis.

“IT is still one of top five export-earning sectors in Pakistan at present,” said SAP Pakistan Country Managing Director Saquib Ahmad.

According to Arif Habib Limited, Pakistan’s IT export stood at $ 1.33 billion in first half (Jul-Dec) of current fiscal year 2023-2 percent higher than $ 1.30 billion earned in same period last year.

Speaking at ‘Digital Transformation and Cloud Migration’, Ahmad highlighted, “IT exports hold high potential for notable growth going forward, but existing policies remain hindrance.”

Government is not allowing foreign IT firms to repatriate profits to their headquarters abroad amid drop in foreign exchange reserves. “This is hurting foreign investors and blocking flow of new foreign direct investment into country,” said Ahmad.

Speculations indicate that amount on hold in repatriation by all foreign firms stands at around $ 1 billion.

Another IT industry official told that they had asked government to allow IT exporters, including freelancers, to hold 100 percent of their foreign income in special foreign currency accounts.

Pakistan is facing crisis of trained human resources despite hosting huge talent nationwide, highlighted SAP MD. “To address issue, SAP is offering free-of-cost training programmes to students at schools and universities in Pakistan with effect from January 1, 2023,” he said, adding that training is offered on SAP software.

Published in The Daily National Courier, January, 27 2023

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