Islamabad, Caretaker Federal Minister for Information Technology and Telecommunications, Dr. Umar Saif, has highlighted the significant progress and achievements in Pakistan’s IT sector, including increased foreign direct investment and development strides, during a Town Hall meeting at the Pakistan Software Houses Association (P@SHA) office.
According to Ministry of Information Technology and Telecommunication, Dr. Saif noted that the Special Investment Facilitation Council (SIFC) played a crucial role in achieving 13 out of 15 key targets for promoting the IT and Telecom sector within five months of the caretaker setup. He emphasized the SIFC’s support in the ongoing development process and its benefits for the upcoming elected government.
Further elaborating on policy interventions, Dr. Saif mentioned the State Bank of Pakistan’s decision to increase the permissible retention limit for IT exporters from 35% to 50% in their Exporters’ Specialized Foreign Currency Accounts (ESFCAs). This policy allows IT companies to retain half of their export revenue in dollars and make international transactions without restrictions, which has led to a 32% increase in IT exports over the last 60 days.
Additionally, Dr. Saif highlighted a 8.99% increase in ICT export remittances, reaching US$ 1.455 billion in the first half of FY2023-24. In December 2023 alone, ICT services export remittances surged by 22.67% compared to the previous year.
The establishment of the Telecom Tribunal was another significant achievement mentioned by Dr. Saif. This specialized body will handle telecom sector disputes more efficiently than the High Courts, expediting legal issue resolution and facilitating telecom sector progress. The Ministry of Law will nominate the Tribunal’s chairperson and members, including a High Court Judge or a lawyer with 15 years of experience and two-member technocrats.
Dr. Saif also discussed the establishment of a research and development fund for mobile phone manufacturing companies, aiming to support the sector’s growth and reduce mobile phone imports.
Regarding the Smartphone for All project, Dr. Saif explained the mechanism for installment payments and handset blocking through the PTA, in case of payment failure, to promote responsible financial behavior and expand smartphone accessibility.
He expressed confidence in launching 5G services by mid-2023, with a plan to auction 300MHz spectrum. Before the 5G launch, the government aims to enhance the optic fiber network, currently linked to only 6,000 out of 56,000 mobile towers.
Dr. Saif announced the establishment of 10,000 e-Rozgar centers nationwide, equipped for freelancers and startups, and the allocation of Rs 2 billion for the Pakistan Startup Fund to bolster venture capital investment in startups.
In conclusion, Dr. Saif expressed optimism about the IT sector’s contributions to Pakistan’s economic development and the ministry’s commitment to supporting these initiatives.