HASSAN ABBAS

LAHORE: The Punjab government has reaffirmed its resolve to assist the Information Technology industry and aims to increase Pakistan’s IT exports from $3 billion to $10 billion in the next five years, the chairman of the Punjab Information Technology Board has confirmed.

Doctor Umar Saif, who too is the university’s Vice Chancellor, at its second round-table conference held by the Tech Hub Connect at the Arfa Software Technology Park on Friday, also talked about the government helping the industry grow further.

He told his audience, “This is reflected in the Punjab government’s decision to withdraw the 19.5-percent tax on the Broadband Internet to support the IT and IT-enabled services. The government has also established a state-of-the-art Information Technology University to promote a cutting-edge research and develop quality human resource for the IT industry.”

Dr. Saif also talked about his board and P@SHA launching a “digital Punjab campaign” to improve Pakistan’s image abroad and attract foreign investment.

He also said the federal government was considering a tax reduction in revenue from eight percent to two percent and might extend the tax holiday on IT exports for another three years.

“The board is in the process of finalising a comprehensive Information and Communication Technology policy for the Punjab in collaboration with the IT industry and academia, which will create an enabling environment for the IT sector to flourish,” he added.

Punjab Revenue Authority officials assured the attendees that the Punjab would continue with a zero-tax policy for IT exports and their board counterparts also reaffirmed the government’s commitment to helping the IT industry.

Dr. Saif went on to say his board would work together with the Federal Ministries of Commerce and Foreign Affairs to facilitate visas for the IT industry and engage commercial consulates to bid for foreign projects.

Amena Cheema, the Chief Executive Officer of the Punjab Board of Investment and Trade, suggested establishment of IT parks as special economic zones to attract the influx of IT companies, local and foreign looking to invest in the Punjab.

She said, “The Punjab Board of Investment and Trade is striving to develop the special economic zones in the Punjab where special incentives will be provided to IT enterprises.”

She also said it would help maximise the export potential of software industry and promote import substitution in the local market”.

“The special economic zones in Pakistan will offer two-fold financial incentives for enterprises, for instance, one-time exemption from all custom-duties and taxes on plant and machinery imported into Pakistan and exemption from all taxes on income accruable in relation to the development and operation of the zones for 10 years, if production starts by June 30, 2020,” she added.

She went on, “The special incentives as per the Special Economic Zones Act will also help attract foreign development investment in the Punjab. To meet the growth targets set by the Punjab chief minister, the Punjab Board of Investment and Trade is providing full guidance and support to IT enterprises and groups looking to develop the IT Parks as special economic zones.”

The audience also included top executives from more than 150 IT companies, academia and officials from the Punjab Revenue Authority, the Federal Ministry of Commerce and the Punjab Board of Investment and Trade.