Shaukat Tarin, Advisor to the Prime Minister on Finance, has stated that IT exports have enormous potential in Pakistan and might be a game-changer for Pakistan’s exports and economy in the long run.
Speaking as the principal guest at the CFA Society’s 18th Annual Excellence Awards at a local hotel in Karachi, he stated that IT would change the scenario of exports and the economy.
Pakistan’s products exports would climb to $32 billion in the current fiscal year, up from more than $24 billion in the previous fiscal year. Furthermore, service exports will exceed $7.5 billion this year, bringing the total sum to $40 billion. In comparison, exports of products and services are predicted to reach nearly $55 billion in the next fiscal year.
The government’s over-reliance on IT exports is surprising, given that the first-quarter expectations were not met. Exports totaled $635 million, compared to a target of $900 million. The Advisor even claimed a 50% rise in IT export growth, which is not true. IT exports increased by 42 percent year on year in the first quarter of 2021-22.
Stakeholders in the IT industry believe that the government’s department has yet to fulfill its commitment to IT exporters as part of a stimulus package. Thus the export value remains less than $300 million every month.
They believed that IT exports should reach $3 billion by the end of the current fiscal year if the government could ensure the plan agreed upon with sector stakeholders.
Advisor to PM, on occasion, further stated that the government’s relief package is the first-ever in Pakistan that aims to provide relief to 130 million people directly.
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Government’s Roadmap for Economic Growth
The International Monetary Fund (IMF) loan program of $6 billion would assist Pakistan in achieving 5% economic growth and collecting more than Rs. 6 trillion in tax revenue in the fiscal year 2022.
So far, revenue collection has been remarkable, with over 30 percent growth in income tax, implying that tax collection could reach Rs. 6 trillion this year, he asserted. Over the following three to four years, the country’s exports will be equivalent to 70-80 percent of imports, he said.