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Express Tribune
18-05-2025
- Business
- Express Tribune
Experts aim to promote cybersecurity
Listen to article Tech experts, strategists and chief executives of IT companies have vowed to promote Pakistan as one of the leading cybersecurity solution providers after it played an instrumental role in getting an edge over India during the recent conventional war. IT companies see cybersecurity solutions as an opportunity to grow as it is an emerging field in the modern world, which can be considered either a challenge or an essential strength of every country, company or entity. For the first time, cyber warfare was witnessed by the world during the military conflict between Pakistan and India, enhancing significantly the importance of cybersecurity and its related technological solutions. Tech expert and former Pakistan Software Houses Association (P@SHA) chairman Muhammad Zohaib Khan said cybersecurity has proved to be a crucial strategic strength of Pakistan in achieving superiority during air and ground military operations, which will not only further build a strong image of the country in IT, but will also aid in ramping up its exports to different countries. He said Pakistani IT companies have already established their reputation as quality and innovative service providers in various countries and their ethical hackers and cybersecurity professionals are a highly preferred choice by renowned companies across the world. It is high time that Pakistani IT companies ought to work aggressively to promote cybersecurity and AI security solutions in a host of countries to enhance the volume of exports, he remarked. What's more, cybersecurity is a specialised field, which fetches high-value projects from foreign clients while considering their customised requirements. IT exporter and Hexalyze CEO Saad Shah said Pakistani authorities, in collaboration with local companies, should foster Pakistan's new specialty in defence and commercial aspects at government-to-government levels and through global trade fairs. He said the world would be surprised to see that Pakistan with merely $3 billion of exports per annum dominated vis-a-vis a country considered the global IT hub with exports of hundreds of billions of dollars. He pointed out that Pakistan will not only boost its exports, but will also explore new markets in the Middle East and Asean region for its cyber and AI solution providers. The government should roll out a comprehensive policy for public and private sector entities and establish cybersecurity departments to protect their assets and businesses effectively from cyberattacks in the wake of recent military clash with the neighbouring state. The World Economic Forum's Global Cybersecurity Outlook 2023 report shows the world needs 3.4 million cybersecurity experts to support today's global economy, but the industry is struggling to fill that gap. The biggest threat to cybersecurity is the unavailability of its professionals worldwide, the report said. P@SHA AI Committee member and IT expert Mehwish Salman Ali said cybersecurity professionals are limited across the world and the situation is same in Pakistan, hence, IT companies and universities should impart training to professionals through boot camps and specialised degrees on a war footing. Realising the ever-increasing importance of cybersecurity and its implementation through AI, the government should allocate a budget for this particular field and introduce an updated curriculum in consultation with industry experts. Pakistan should prepare cyber guards in large numbers to cater to its national requirements as well as the emerging global demand, which is highly possible considering the youth population and their tendency to acquire IT skills, she said. The chief executive officers of various IT companies suggested that the government and the private sector should develop an aggressive strategy to train professionals as cyber guards - specialists, consultants and experts. Besides, three to six-month boot camps for the aspiring professionals, degrees from one-year diploma to bachelor programmes on a medium-term basis and MS to PhD programmes on a long-term basis should be launched in universities.
Express Tribune
17-04-2025
- Business
- Express Tribune
IT exports surge by 23% in Q3FY2025
Listen to article Pakistan's IT sector maintained its handsome export growth, showing an increase of 23% year-on-year by the end of the third quarter of the current financial year as compared to the corresponding period of the last financial year. According to the statistics updated by the State Bank of Pakistan (SBP), export receipts of IT and IT-enabled services surged to $2.828 billion during the period of January to March as compared to $2.284 billion reported in a similar period of the last financial year. Mehwish Salman Ali, an IT exporter and CEO of Datavault, said that the IT sector maintained its export growth gradually due to the aggressive strategy of the Ministry of IT and Telecommunication (MoITT) to promote an export-oriented policy. She said that IT companies in Pakistan are now focusing on enhancing exports to traditional markets of the North American and European regions as well as emerging markets, including the Kingdom of Saudi Arabia, the United Arab Emirates, and other GCC countries to attract new buyers and export orders. Pakistan IT companies should concentrate on emerging technologies to book big-ticket orders across the globe through collaboration and joint ventures with national and foreign companies, she added. The government took a few steps to facilitate IT exports a few months ago, which resulted in growth in inflows of monthly export values. In March 2025, export receipts of IT and IT-enabled services surged to $342 million as compared to $305 million reported in the previous month of February 2025. Saad Shah, an IT exporter and CEO of Hexalyze, said that Pakistani IT companies should diversify their exports to the emerging markets of the GCC and ASEAN regions with immense potential to attract business in automation, enterprise resource planning, artificial intelligence, fintech, gaming, cybersecurity, and etc. Pakistan should penetrate the GCC markets, mainly the KSA and UAE, as the group of companies having multiple strengths and expertise under one umbrella to share export orders of state-owned companies and major private conglomerates. Besides, IT companies should invest in human resources within Pakistan and GCC countries to meet the requirements of foreign clients, he added. It is pertinent to mention Pakistan made its stellar presence in LEAP 2025 held in Riyadh with more than 100 companies showcasing their products, services, and solutions. The Pakistani IT industry also set a target to double its exports to the KSA to $50 million on an annual basis.
Express Tribune
13-03-2025
- Business
- Express Tribune
P@SHA calls for 10-year tax exemption to boost IT exports
Listen to article The Pakistan Software Houses Association (P@SHA) has urged the government to restore a 10-year tax exemption under the Final Tax Regime (FTR) for IT and IT-enabled services (ITeS) exports from 2025 to 2035 to ensure predictability, continuity, and investor confidence. The IT industry is currently attracting major investments, experiencing operational expansions, and achieving regional diversification in export markets. The FTR allows for a reduced withholding tax rate of 0.25% on export proceeds for entities registered with the Pakistan Software Export Board (PSEB) until the specified date. Therefore, the continuation of the FTR is imperative for sustaining export growth and investment momentum in the IT industry. The FTR for IT and ITeS is set to expire on June 30, 2026. A 10-year tax exemption will accelerate digital transformation, boost investor confidence, and position Pakistan as a leading IT hubaligning with the objectives of the Special Investment Facilitation Council (SIFC) and the prime minister's vision for exponential IT export growth. The continuation of the FTR will simplify tax structures for IT firms and encourage reinvestment by allowing exporters to retain more revenue for business expansion and technological innovation. Additionally, providing tax incentives and ensuring policy-level consistency is essential for creating a favourable business environment for the IT/ITeS industry. P@SHA Chairman Sajjad Mustafa Syed explained that reinstating the FTR for IT and ITeS exports would align Pakistan with regional competitors offering long-term tax incentives to attract foreign direct investment (FDI). The IT sector requires stability and consistency to maintain global competitiveness, increase exports, and create employment opportunities. He maintained that disparities in taxation between salaried employeeswho pay between 5% and 35% in income taxand remote workerswho pay only 0.25% to 1%lead to talent migration, brain drain, and difficulties for local companies in retaining skilled IT and tech professionals. To unlock the industry's full potential, he said, the government must significantly reduce income tax rates for salaried individuals in IT companies. One of P@SHA's key recommendations is to encourage and enable foreign exchange repatriation. Under the current Income Tax Ordinance (ITO), 2001, payments made to non-residents for services rendered in Pakistan are subject to an unfair withholding tax (WHT). Withholding tax rates vary depending on the nature of the payment and the existence of Double Taxation Agreements (DTAs) between Pakistan and the recipient's country. For instance, royalties and fees for technical services paid to non-residents without a permanent establishment in Pakistan are subject to a 15% withholding tax. Saad Shah, an IT exporter and CEO of Hexalyze, urged the government to allocate a budget to support IT-exporting companies exploring emerging and high-potential markets, including Saudi Arabia, the UAE, Qatar, and Singapore. He explained that these markets are investing billions of dollars in various IT sectors, including AI, robotics, cybersecurity, and fintech, offering significant revenue opportunities for service providers. Pakistani exporters have showcased their products and services in recent months and received an encouraging response, he said. The government should also continue enhancing trade relations at the state level through the Ministry of Information Technology and Telecommunication (MoITT), the Pakistan Software Export Board, economic attachés, and diplomatic missions to promote IT business, boosting exports and investment opportunities.
Express Tribune
08-02-2025
- Business
- Express Tribune
Pakistan to double IT exports to Saudi Arabia
Listen to article KARACHI: Pakistan is set to enhance its exports of IT and IT-enabled services to the Kingdom of Saudi Arabia (KSA) in the next few months, increasing from $50 million to $100 million with the consistent penetration of major IT companies and their expanding footprint in the brotherly state. The government of Saudi Arabia planned a mega $100 billion project for Artificial Intelligence (AI) and data infrastructure in November 2024, inviting companies worldwide to invest and participate in its development plan. Pakistan Software Houses Association (P@SHA) Senior Vice Chairman (SVC) Muhammad Umair Nizam said Pakistani IT companies and the government also planned to prioritise their export strategy, including exploring the untapped potential of non-traditional and emerging markets such as the Kingdom of Saudi Arabia. "We doubled our exports to $50 million to the KSA last year, and now Pakistan's IT industry is also working aggressively to drive up exports of IT and IT-enabled services to the brotherly state manifold," he said. In this regard, all stakeholders, including the Ministry of Information Technology and Telecommunications (MoITT), Pakistan Software Export Board (PSEB), and P@SHA, are working on an aggressive strategy to provide a collaborative environment for Pakistan's IT companies to enhance their exports through various joint ventures and consortiums, he said. Last year, several local IT companies took an active part in a major tech trade event and conferences in KSA. This year, local IT firmsrising by 20%-25%will participate in LEAP 2025 [Leadership, Engagement, Advancement, and Partnerships for 2025], which will be held from February 9-12 in Riyadh, KSA, with more than 1,000 Pakistani delegates attending the event. The P@SHA SVC said, "We are expecting multiple business deals and Memorandums of Understanding (MoUs) to be signed at LEAP this year, which will significantly impact the country's exports this year." The Ministry of Investment of Saudi Arabia (MISA) has established a help desk to assist Pakistani companies in registering quickly and easily in Saudi Arabia. This help desk was created to streamline the registration processes, leading to the registration of over 100 Pakistani tech entities in the KSA market. Headquartered in Riyadh, Pakistan also became a member of the Digital Cooperation Organisation (DCO) in 2024. Saad Shah, an IT industry exporter in KSA, said that Pakistani companies should enhance their focus on the emerging Saudi market, as setting up companies in the brotherly state has become much easier than before. He said Pakistani companies could explore various areas such as enterprise solutions, AI, cloud computing, and data centres to secure profitable projects from multinational, private, and public sector entities. The LEAP 2025 programme presents a significant opportunity for IT companies to exponentially increase their export revenue, not only in KSA but across the entire Gulf Cooperation Council (GCC) region, he said. LEAP is one of the major tech events, with over 1,800 tech brands and 170,000 visitors expected to attend this year in Riyadh.
