Prime Minister Imran Khan has announced the establishment of the Pakistan Technology Startup Fund to give Rs.1 billion seed funding to around 50 tech startups every year.
The premier announced the tech startup fund while chairing a meeting to discuss his foreign tours and IT sector initiatives taken by the government.
“Tech-savvy youth and Information Technology sector are Pakistan’s biggest assets that can be exploited to bridge the huge current account deficit,” said the prime minister, according to the state-run media outlet.
The meeting was attended by IT Minister Syed Amin ul Haque, Finance Minister Shaukat Fayyaz Tarin, NSA Dr. Moeed Yusuf, Chairman STZA Amir Hashmi, SAPM on CPEC Affairs Khalid Mansoor, Chairman CDA Amir Ali Ahmed, Chairman FBR Dr. Muhammad Ashfaq Ahmed, and other senior officials.
2021 proved to be a break-out year for Pakistan’s technology sector, with many investors from around the globe investing money and startups raising around $375 million, twice the total investment received in the last six years, according to firms that examine foreign investments in startups.
“Emphasising on his vision to boost IT exports to $50 Billion in the next few years, the Prime Minister highlighted the importance of unleashing the IT industry by providing them ease of doing business and the best incentives globally available,” told the news agency.
Details of the IT Package announced by PM:
The following measures will be taken as per the historic tech package announced by the prime minister:
- Tax holiday for IT companies and freelancers
- 100 percent Forex retention for IT Companies and freelancers
- Establishment of Special Technology Zones (STZs) on fast track basis in Islamabad and all provincial capitals to create hubs of IT innovation and investment in cities.
- Sectors of CDA in Islamabad Will be declared as Special Technology Zones
- Initiate Roshan Digital IT Acounts (RIDA) by State Bank of Pakistan to allow freelancers and IT firms to retain 100% of their foreign income in foreign exchange.
- No restriction of outward remittances from FC accounts for PSEB registered companies
- Resolution of double taxation of IT sector by FBR
- Exemption from Capital Gains Tax of venture funding into startups