Friday, July 19, 2024

Sustaining IT Sector Growth: A Call for Continued Policy Implementation and Support in Pakistan

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Software Body Advocates for Sustained IT Sector Reforms

In a recent statement, the Chairman of the Pakistan Software Houses Association (PASHA), Muhammad Zohaib Khan, voiced a strong stance on the need for continued support and implementation of plans, policies, and initiatives to ensure the IT export sector remains on a growth trajectory. This emphasis on steadfast policy support comes at a time when the IT industry’s export performance exhibits resilience and steady progression, despite facing numerous challenges.

Within the first seven months of the fiscal year 2024 (7MFY24), the IT industry has shown commendable performance. The sector earned a substantial $1.7 billion in foreign exchange, marking a 13% increase from the $1.5 billion recorded during the same period in the previous year. Such growth underscores the sector’s significant role in bolstering the national economy and highlights the importance of sustained governmental support.

Khan elaborated on several key policy initiatives critical for the continued expansion and success of the IT sector. Among these, he highlighted the necessity of the Pakistan Startup Fund, eRozgaar Centres, and the retention of 50% of foreign earnings, which collectively aim to foster innovation and entrepreneurship within the IT landscape.

Moreover, the call for certifying 75,000 IT professionals speaks to the critical need for upskilling the workforce to meet global standards, while the push for enabling 5G Spectrum, establishing a Telecom Tribunal, and investment facilitation through the Special Investment Facilitation Council (SIFC) are all geared towards creating an enabling environment for the IT sector to flourish.

The achievements of these key policy measures are intrinsically linked to their execution and the maintenance of continuity in policies by the succeeding government. Khan’s emphasis on this continuity points to a broader strategic vision that goes beyond immediate gains, aiming instead for long-term, sustainable growth of the IT sector, which is fundamental for Pakistan’s socio-economic development.

The IT sector’s impressive performance, particularly the $265 million in exports recorded in January, which represents a 39% growth year-on-year, was also highlighted as a testament to the sector’s potential to contribute significantly towards economic stabilization and the reduction of the current account deficit. This achievement not only illustrates the sector’s vitality but also its capacity to play a pivotal role in Pakistan’s economic recovery and growth strategy.

As the IT industry continues to navigate through challenging times, the call for sustained reforms and policy support serves as a crucial reminder of the sector’s potential to drive significant economic benefits for Pakistan. Such strategic policy initiatives and the continuation of reforms are essential for maintaining the positive momentum necessary for the IT sector to thrive and contribute effectively to the national economy.

Alex Sterling
Alex Sterlinghttps://www.businessorbital.com/
Alex Sterling is a seasoned journalist with over a decade of experience covering the dynamic world of business and finance. With a keen eye for detail and a passion for uncovering the stories behind the headlines, Alex has become a respected voice in the industry. Before joining our business blog, Alex reported for major financial news outlets, where they developed a reputation for insightful analysis and compelling storytelling. Alex's work is driven by a commitment to provide readers with the information they need to make informed decisions. Whether it's breaking down complex economic trends or highlighting emerging business opportunities, Alex's writing is accessible, informative, and always engaging.

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