As shocking news broke during a high-level meeting of the Prime Minister’s Committee on IT Export Remittances, it was revealed that out of Pakistan’s 2.32 million freelancers, just 38,000 have bank accounts in the country.
A statement from the Finance Division on Friday said that the meeting, which was led by Finance Minister Muhammad Aurangzeb, talked about ways to increase the flow of money sent back to India by IT exports. In his speech, Aurangzeb emphasized the importance of Pakistan’s fast-expanding information technology sector to the country’s economic development.
He said, “The IT sector has the potential to be a cornerstone of foreign exchange generation through export remittances. A collaborative approach, consistent policies, and targeted reforms are essential to unleash its full potential and repatriation of foreign earnings.”
Strategies to Improve IT Export Remittances and Support Freelancers
In order to increase IT export remittances, the discussion focused on the possibilities and threats facing the IT sector, with a particular emphasis on making capital mobility easier.
Although IT exports are on the rise, participants noticed that a significant amount of revenue is still not being sent.
The participants emphasized the “need for simplified procedures, consistent tax exemptions for freelancers, and addressing issues related to remote workers classification and small IT firms to create a more favorable environment for IT businesses to remit their earnings back into the country”.
Only 38,000 out of 2.32 million Pakistani freelancers have bank accounts, despite the fact that they contribute 15% of the country’s IT exports, according to the statement.
Participants emphasized the critical significance of maintaining current account holders and motivating others to do the same, despite the fact that 500 new accounts are being opened weekly according to data from the State Bank of Pakistan (SBP).
“Streamlining account opening procedures, awareness campaigns, improving complaint resolution mechanisms and prioritizing the IT sector in banking frameworks” were among the steps that Governor SBP took to address the difficulties, as he informed the committee.
Strengthening the IT Sector with Global Payment Solutions
The participants also considered using the Roshan Digital Account (RDA) to help IT companies and freelancers with overseas remittances, according to the Finance Division release.
“The discussion stressed the urgent need for access to global payment gateways like PayPal and the creation of similar payment solutions at home to empower IT professionals and freelancers and enhance Pakistan’s global competitiveness,” the statement added.
Members of the Freelancers Association, FBR, SBP, IT Ministry, P@SHA, and the committee made the decision to form a working group.
“The group will focus on harmonizing data, identifying significant issues, simplifying processes, enhancing transparency, and ensuring continuity of progress made by SBP and other stakeholders,” read the statement.
Aurangzeb, Pakistan’s minister of finance, has called on all parties involved to pull together in order to solve problems, boost IT exports, and make Pakistan a major player in the international IT market.
Attendees included Shaza Fatima Khawaja, Minister of State for IT & Telecom, Khurram Shehzad, Advisor to the Finance Minister, Chairman of the Federal Board of Revenue (FBR), Governor SBP, CEO of Pakistan Software Export Board (PSEB), and senior officials from the Finance Division and IT Ministry.
