In the federal budget 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 development budget of the IT and telecom sector stands at Rs27.43 billion, a significant rise from the Rs6 billion allocated in the current financial year.
The budget includes Rs21 billion for ongoing development projects and Rs6.28 billion for new initiatives. Among the key projects, Rs3.5 billion has been earmarked for expanding the digital economy, a project that will be completed with World Bank funding. Additionally, Rs1 billion is set aside to foster innovation within the IT industry, a project totaling Rs9.95 billion.
Specific allocations include 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 plan for establishing an IT park in Karachi will receive Rs6.78 billion, while a technology park project in Islamabad is allocated Rs9.92 billion.
Furthermore, Rs1.80 billion is designated for the Prime Minister's IT startups project, aiming to boost entrepreneurship and innovation in the tech sector. An additional Rs1 billion will be spent on enhancing cybersecurity under the Digital Pakistan initiative.
Meanwhile, during April this year, Pakistan saw an increase of 62.3% in IT exports compared to the same period last year. According to a BBC report, the increase in IT exports is a result of policy reforms and business-friendly policies introduced by the Special Investment Facilitation Council.
The report further stated that the stability of the local currency and allowing freelancers to deposit foreign earnings into local bank accounts are the main factors of this surge in IT exports. The State Bank of Pakistan has also relaxed the retention limit for IT companies from 35 to 50%, which is a factor in this increase.
The IT sector is regarded as one of the priority sectors of the Special Investment Facilitation Council, and all stakeholders have been assured of its reliability. Another significant reason for this increase in IT exports is that over 25,000 IT graduates and freelancers earned money from foreign companies, which resulted in a surge in foreign exchange.
