Stakeholders from the IT industry and freelancers’ community have proposed that the government establish a dedicated regulatory cell to oversee key initiatives, especially on data collection.
The recommendation was discussed in a meeting of the working group chaired by Shaza Fatima, Federal Minister for IT and Telecommunication, under the directives of Prime Minister Shahbaz Sharif, in Islamabad.
The participants of the group included the Chairman of the Federal Board of Revenue (FBR), Governor of the State Bank of Pakistan (SBP), Secretary of the Ministry of IT and Telecom, and others.
The working group deliberated the need for targeted support for the IT sector to facilitate growth, upskilling and reskilling, based on accurate data to help develop a roadmap and to enhance productivity and export through targeted interventions.
It recommended comprehensive data collection on software companies, their employees, exports, tax records, global presence, and the type of services. Additionally, details on freelancers and remote workers, including their locations, credentials, earnings, type of work, and certifications.
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The group suggested that the central bank provide analytics to the IT industry through revision of the R Form and simplifying the tracking mechanism at both the company and individual levels.
Furthermore, a database should be developed in collaboration with universities on IT and other graduates.
According to the proposal, the regulatory cell will oversee and promote activities of the IT industry and freelancers, support them in business expansion and attract foreign exchange through export receipts.
It will also coordinate marketing events and encourage freelancers and IT companies to adopt formal channels.
The cell is expected to supervise training, mentoring and certification frameworks for professionals and students, support upskilling and reskilling of human resources through free training, laptop schemes and co-working spaces.
Also, the updated database could facilitate the provision of annual incentives to registered freelancers, i.e. free credits for remittance officially verified through data.
The members of the working group included SBP Governor Jamil Ahmed, FBR Chairman Rashid Mahmood Langrial, Chairman of the Pakistan Freelancers Association (PAFLA) Ibrahim Amin, Secretary of the Ministry of IT & Telecom Member Zarrar Hasham Khan, CEO of the Pakistan Software Export Board (PSEB) Abu Bakar, Systems Ltd CEO Asif Peer and IGNITE CEO Adeel Aijaz Shaikh.
The working group also urged the government to extend tax exemption for the IT industry and freelancers’ community, which is set to expire next year.
PAFLA Chairman Ibrahim Amin said that the government remains keen to promote the IT industry and freelancers’ community through different initiatives and programmes.
He added that remittance inflows through freelancers could increase significantly in the coming years, provided existing challenges are addressed.
Amin also urged the government to provide incentives to IT companies and freelancers similar to those offered to Overseas Pakistanis under the Roshan Digital Account (RDA).
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