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Friday July 19, 2024

Fuelling brain drain

By News Desk
June 20, 2024
Fuelling brain drain

The 2024-25 budget has sparked significant concern regarding its potential to accelerate brain drain, particularly in Pakistan's IT sector. High taxation within this sector, coupled with the government's neglect of industry-specific budgetary proposals, threatens to drive skilled professionals out of the country, stifling growth and innovation. Despite repeated assurances, the government has largely ignored the budgetary suggestions from the IT industry. Instead, the budget imposes higher income taxes on the salaried class, exacerbating the already critical issue of brain drain. Professionals in the IT industry, facing increased financial burdens and a higher cost of living, are more likely to seek opportunities abroad where economic prospects are better and environments more supportive of technological innovation.

Without targeted support for IT entities, the industry cannot thrive, and Pakistan risks losing its competitive edge in the global market. The sector has immense potential as a major export earner and source of employment, yet the government's policies appear counterproductive. By not engaging with industry stakeholders and ignoring their proposals, the government has missed an opportunity to harness the sector's full potential.

Dr Intikhab Ulfat

Karachi