IT exports surge 32 percent in two months on SIFC backing: minister

LAHORE: Pakistan's IT exports rose by a record 32 percent in the last 60 days, thanks to timely decisions by the Special Investment Facilitation Council (SIFC) to support the IT sector, a caretaker minister said on Tuesday.

Dr. Umar Saif, caretaker minister for Information Technology and Telecommunications (MoITT) said SIFC had also approved the recommendations of the IT ministry to allocate Rs1 billion to boost the IT sector, which was playing a pivotal role in the country's economy.

"In the first and second quarters of the current financial year, the performance of many companies in IT exports also showed a positive trend," Saif said. The minister said the government had decided on incentives and rewards for the companies that showed positive growth in IT exports. "In such a situation, it was decided to give cash prizes from the allocated fund of one billion rupees to encourage companies and accelerate positive growth."

Highlighting the causes behind the distribution of huge cash prizes and awards, Saif said that the IT Ministry had decided to encourage companies with a positive growth in IT exports, for which the government had allocated Rs1 billion in the annual budget.

Minister Saif distributed Rs825 million as a cash prize to the companies playing a significant role in IT and IT enabled services exports at a ceremony organized by The Pakistan Software Export Board (PSEB), in Lahore

Out of this fund, Rs825 million have been distributed to 550 companies in six categories, based on their performance and size. The top 10 companies also received trophies for their outstanding achievements.

For this purpose, six categories have been made, the first top 100 companies have been awarded Rs2.5 million, the second 100 companies Rs2 million, the third 100 companies Rs1.5 million, the fourth 100 companies Rs1.25 million, the fifth 100 companies Rs750,000 and the sixth and last category 50 companies have been awarded Rs500,000 each.

Saif said that the remaining Rs175 million will be given to companies that provide employment to trained IT professionals. He said that the ministry has launched an industry co-opt program, in collaboration with the Higher Education Commission and the Pakistan Software Houses Association, to offer apprenticeship opportunities to IT students.

The minister said that the program will place an estimated 3,500 interns in the IT and IT-enabled services exporters, and pay them Rs50,000 each. The process will not only showcase the capabilities of the IT talent, but also help the industry find suitable candidates according to their needs and market demand.

The minister said the IT industry, which is playing a pivotal role in the country's economy, deserves maximum incentives, facilities and rewards, as these companies are strengthening the country's economy by earning huge foreign exchange in return for the services of digital talent of Pakistani talent worldwide.

"If the performance of the IT sector continues like this, it is hoped that the target of 10 billion dollars for IT exports will be achieved soon."

Earlier in a welcome address, additional secretary IT and chief Executive PSEB Ayesha Humaira Moriani said that six categories were created in terms of IT consultancy services, IT products and solutions, call centers, gaming and animation, women entrepreneurs, and fast-growing companies.

“The IT & ITeS Export Awards 2024 underscored Pakistan’s commitment to fostering innovation, driving economic growth, and positioning itself as a key player in the digital economy.”

Speaking on the occasion, chairman P@SHA Mohammad Zohaib Khan termed the process of giving cash rewards and awards as the best step for the IT sector and said that this decision of the caretaker IT Minister was giving encouragement and confidence to the IT companies and freelancers. "We will continue to increase our role in the economic stability of the country."