Tech industry to help boost exports, overcome unemployment: PM

LAHORE: Prime Minister Imran Khan on Thursday said that the constant cycle of foreign exchange depletion and pressure on rupee following a spurt in economic growth can only end if exports are ramped up — and for that, technology is of paramount importance.

Addressing the inauguration ceremony of Lahore Technopolis, a special technology zone, the premier said: "As soon as the economy witnesses a bit of growth, we experience a depletion in dollar reserves used for imports of machinery (to bring about the growth), and that creates a bottleneck in our current account."

"Pressure builds up on the rupee and our reserves, and then we are compelled to [repeatedly] approach the International Monetary Fund," he said.

The prime minister said that if incentivised and facilitated, the technology industry could help overcome the current account deficit of the country by boosting exports as well as addressing the issue of unemployment.

Speaking of the inaugurated project, he said it would help provide incentives to the tech industry and bring ease for the businessmen, in accordance with the government’s vision.

Special technology zones being developed all across the country would be home to science and technology parks, manufacturing units, research and development centers of global tech companies and software houses, he said.

The project will also feature, universities, incubators, accelerators and other ecosystem players.

Before Lahore, Islamabad Technopolis was also announced earlier this year.

The prime minister lauded Chief Minister Punjab Sardar Usman Buzdar and other relevant ministers for allocating 800 acres of land for the purpose, which he said was the “future of the world”.

Exemplifying his point citing Google and other tech giants, the prime minister said that during COVID-19, all other businesses faced a slump but the profits of tech companies multiplied.

He said unfortunately, Pakistan lagged behind in the sector despite having ideal conditions including a huge population of the young.

PM Imran Khan said over the past 15-20 years, Indian tech exports boomed to $150 billion while Pakistan could reach only $2 billion.

Citing the Chinese model of development, the prime minister said the country achieved remarkable progress and steered 700 million people out of poverty by eliminating corruption, jailing over 450 ministerial-level people, as well as by enhancing exports.

The prime minister called for redirecting the focus of the government as well as the population towards enhancing exports and wealth creation.

He said taking advantage of its 12 climatic zones, the country could reduce its import bill of commodities like edible oil through indigenous production of palm oil.

Overseas Pakistanis 'biggest asset'

Calling them the biggest asset, the prime minister also emphasised the involvement of the overseas Pakistanis towards investment and wealth creation in Pakistan.

He said China and India also first attracted their own firms operating abroad to invest at home.

He said the Pakistani individuals as well as the firms operating abroad, including in the Silicon Valley, were interested to invest in Pakistan which necessitated incentives and ease of doing business.

'Join the tech race'

Prime Minister Imran Khan said the objective behind establishing the Technopolis projects in Lahore, Islamabad and KP was to make Pakistan join the tech race and provide employment to the people.

MoU for $300m in investment, 10-year tax exemption

Earlier, the prime minister also distributed licenses among the companies which would be operating in the Technopolis.

The event also marked the signing of a Memorandum of Understanding for an investment of $300 million for the establishment of another three technology zones in different parts of the country.

Punjab Chief Minister Sardar Usman Buzdar said Lahore had been selected for the Technopolis considering the existence of universities and other tech institutes as well as companies in the city.

He said the project would help carry out technology-based research and studies.

In order to attract investment to Technopolis, the government has given a 10-year tax exemption to companies operating there, he added.

The chief minister said that companies from various countries like US, Canada, China and Australia had expressed interest in investing there.