Introduction
The Chairman of the Pakistan Software Houses Association (P@SHA), Muhammad Zohaib Khan, recently expressed concerns regarding the potential failure to achieve the ambitious target of $15 billion in IT exports within the next five years. Khan attributed this potential setback to the government’s failure to meet one of the industry’s key demands: a tax holiday for ten years. While the Pakistan’s IT industry appreciates the prioritization of the sector in the federal budget for 2023-24, Khan warns that inconsistent and unreliable implementation, as seen in past budgets and export promotion schemes, poses significant challenges to the industry’s growth. The need for policy consistency, investment guarantees, and improved support for IT companies in order to overcome these obstacles.
Inconsistency of Policies and Lack of Implementation
Khan emphasizes the critical issue of policy consistency in Pakistan’s IT industry. The frequent change in government often leads to shifts in policies, making it difficult for the industry to plan strategically and attract foreign direct investment (FDI).
In order to foster a conducive environment for investment and growth, the industry demands a guarantee of fifteen years that policies will remain stable. This assurance would enable companies to make long-term investments, establish joint ventures with multinational corporations, and capitalize on FDI opportunities. Without this stability, the industry faces uncertainty and risks hindering its potential for growth and global competitiveness.
Challenges Faced by Export-oriented Companies
While the government has withdrawn the super tax imposed on export-oriented companies, Khan points out that these companies continue to face challenges. Many of them still receive notices, undergo harassment, and have their bank accounts frozen.
Such experiences create a hostile environment for businesses, impede their operations, and discourage foreign investors. To truly support export-oriented IT companies, it is crucial to ensure that they can operate without unnecessary obstacles and harassment. Providing a favorable business environment will encourage these companies to thrive, contributing to the overall growth of Pakistan’s IT exports.
Importance of Skills Development
Khan acknowledges the positive step taken by the government in introducing a scheme for the skills development of 50,000 IT graduates in the budget. This initiative has the potential to be a game-changer if implemented equitably and productively throughout the country.
By enhancing the skill set of IT graduates, Pakistan can bolster its talent pool and improve the quality of its workforce. Skilled professionals will not only be able to meet the demands of the domestic market but also contribute significantly to export-oriented IT companies. It is crucial to ensure that the implementation of this scheme is efficient and widespread, reaching aspiring IT professionals across the nation.
Conclusion
The Chairman of P@SHA, Muhammad Zohaib Khan, highlights the challenges faced by Pakistan’s IT industry in achieving the target of $15 billion in IT exports. The lack of policy consistency, unreliable implementation, and harassment faced by export-oriented companies hinder the industry’s growth potential. To overcome these obstacles, it is vital for the government to provide guarantees of policy stability, creating an environment conducive to strategic investments, FDI, and joint ventures. Additionally, the development of IT skills through equitable and productive schemes can play a transformative role in strengthening Pakistan’s IT industry. By addressing these challenges and providing robust support, Pakistan can unlock the true potential of its IT sector and position itself as a global player in the digital economy.
