KARACHI: With the development of information technology (IT) parks in different cities of the country along with the government policies to give tax exemption to export of IT services for next three years, the IT sector is all set to grow and prosper in future provided that stakeholders throw their weight behind vision of policymakers. The government in the recent budget awarded three years extension of income tax to IT companies active in the exports of services to different countries whereas it also waived off GST on basic equipment such as laptops and computers that will provide support to companies for expansion and growth. The tax relief has been a great development as the income tax exemption was supposed to expire this year and this step will allow support to market players, Noman Said, an IT consultant and exporter said. The result of the tax extension will be enhancing exports along with employment levels and holistically creating a positive impact on the GDP of the country, he said. According to Noman, it takes up to three to five years for a new company or start up to set up its footing in the local market but it takes more than five years for companies to commence their exports of IT services. According to a data, around 413 new IT companies were registered with the Securities and Exchange Commission of Pakistan (SECP) during July-2015 to March-2016. To cater to these growing needs, a well-sought action plan is required giving importance to scalability, which will broaden the IT spectrum and methods to reduce the IT debt. “In this regard, the development of IT parks is good initiative of the government which should be given impetus through setting up Islamabad IT Park for which a Korean company has pledged to invest $50 million,” he said. Pakistan has been struggling towards growth in different sectors of the country due to various factors that include lack of governance, infrastructure, accountability, and most importantly education. Despite these, Pakistan has seen rising interest amongst youngsters and significant development towards the IT sector in recent years. The country is lucky to have 60% population as its youth; hence its human capital can be utilised for generating income, acquiring foreign exchange and increasing employment opportunities in the country. If the right importance is given to this sector with strategic action to align IT with education, this sector will witness immense growth in a short span of time, added Noman. India youth is a visible example as far as acquiring knowledge in the top educational institutes is concerned as the neighbouring country is aiming their IT targets of the current fiscal year at $145 billion, growing at a rate of 13-14%. Other countries in close proximity such as China sets its IT targets to a total of $124.5, and Korea at to $406 billion in 2015, respectively. These global facts indicate the potential that this sector holds and that it must be acknowledged as an industry for economic growth. The exemption of GST on laptop and desktop computer is a good omen not only for IT industry but for educational and commercial sector as well. This relief will push down prices of laptops, hence a lot of youngsters will move towards freelancing for local and international clients, Noman said, who is also CEO of SI Global Solutions. Pakistan’s export of information technology and IT-enabled services (ITES) amounted to $2.2 billion in fiscal year 2014-15, according to Pakistan Software Export Board (PSEB). These facts and figures portray that that Pakistan holds great potential, and efforts are required to boost it even further. State Minister for Information Technology Anusha Rahman had emphasised that the Pakistan Software Export Board (PSEB) should focus on counselling and marketing IT companies. The result of this will increase exports, and is expected to surge to $5 billion before 2020. Even though this exemption had been extended, it was previously witnessed that the government had imposed an 8% withholding tax on this sector in the year 2015-16 which hurt and stunned the growth along with compelled local businesses to shift to tax-free havens such as Dubai. Providing leverage at one corner and hurting it from the other will not let this sector grow at its true potential. Stakeholders in IT sector are of the view that Pakistan has great potential that is waiting to be harnessed but these expectations will only turn into reality by receiving continuous support from the government. The extension of the tax holiday is a great step by the government at a time when the sector is struggling and such recurring initiatives will assist in building a platform for continuous growth.