In the federal budget for 2024-25, the government has prioritized the IT and telecom sector, proposing a substantial increase in the development budget by over Rs21 billion.
The proposed allocation for the IT and telecom sector’s development budget is Rs27.43 billion, a significant rise from the Rs6 billion allocated in the current financial year.
This budget includes Rs21 billion for ongoing development projects and Rs6.28 billion for new initiatives. Key projects include Rs3.5 billion earmarked for expanding the digital economy, which will be completed with World Bank funding, and Rs1 billion set aside to foster innovation within the IT industry, part of a larger project totaling Rs9.95 billion.
Specific allocations feature Rs50 million for a Rs400 million digitization project for the National Assembly and another Rs50 million for upgrading the broadcast system of the National Assembly. The establishment of an IT park in Karachi will receive Rs6.78 billion, while a technology park project in Islamabad is allocated Rs9.92 billion.
Additionally, Rs1.80 billion is designated for the Prime Minister’s IT startups project to boost entrepreneurship and innovation in the tech sector. Another Rs1 billion will enhance cybersecurity under the Digital Pakistan initiative.
In April this year, Pakistan saw a 62.3% increase in IT exports compared to the same period last year. According to a BBC report, this increase is due to policy reforms and business-friendly policies introduced by the Special Investment Facilitation Council.
The report highlighted that the stability of the local currency and allowing freelancers to deposit foreign earnings into local bank accounts were key factors in this surge in IT exports. The State Bank of Pakistan has also relaxed the retention limit for IT companies from 35% to 50%, contributing to the increase.
The IT sector is considered a priority by the Special Investment Facilitation Council, and stakeholders have been assured of its reliability. Another significant reason for the increase in IT exports is that over 25,000 IT graduates and freelancers earned money from foreign companies, leading to a surge in foreign exchange.
