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Business Recorder
23-05-2025
- Business
- Business Recorder
Bridging policy gaps in IT sector
EDITORIAL: The increasingly pivotal role that the country's IT sector plays in driving national development — by creating jobs, generating vital tax revenue, boosting exports, and attracting both domestic and foreign investment — positions it as a potentially transformative engine of inclusive and sustained economic growth. Even amid the economic turmoil of recent years, the sector has remained a resilient performer, and is set to contribute close to USD4 billion in exports by the close of the current fiscal year. By 2030, this figure is expected to surge to USD15 billion. Despite this promising outlook, numerous facets of the government's approach to the IT sector continue to impede its growth, and prevent it from realising its true potential. In a recent press briefing, the chairman of the Pakistan Software Houses Association (P@SHA) outlined key hurdles facing the IT sector, including policy unpredictability, ad hoc taxation measures and operational bottlenecks. He emphasised how these issues undermine investor confidence and constrain the sector's economic contributions. At the heart of these difficulties lie the frequent changes in tax regulations, ranging from export incentives to withholding taxes and other fiscal measures, which discourage long-term investment. Sudden and arbitrary changes to the tax framework weaken investor confidence, jeopardising years of effort by Pakistani software houses and IT companies to build global credibility, nurture talent and develop robust digital infrastructure. Pakistan currently imposes one of the highest corporate tax rates in the region at 29 percent, compounded further by elevated auxiliary taxes and high input costs. In contrast, the UAE maintains a rate as low as nine percent, while Vietnam's stands at 25 percent. Vietnam's streamlined government policies and predictable tax environment, in fact, have helped its annual exports surge to a highly impressive USD141 billion, underscoring the vast potential Pakistan could also unlock in export earnings if its IT sector were supported by a more enabling and competitive tax regime. Persistently high tax rates risk pushing IT firms to more favourable jurisdictions, weakening local industry and forfeiting future gains. While our chronic struggle with low tax revenues is well-documented, uncompetitive tax structures will not resolve the issue, and are more likely to deter investment, drive capital outflow and ultimately worsen the revenue shortfall they aim to address. Another critical issue is the misalignment in tax treatment between employees of IT firms operating domestically and independent remote workers employed by foreign companies. As P@SHA has noted, despite the rapid growth of remote work in recent years, remote workers remain undefined under the Income Tax Ordinance, 2001. This legislative gap has led to a significant disparity: while IT companies must withhold an additional 30 percent income tax from employees earning over Rs2.5 million annually, remote workers earning similar incomes are not subject to the same tax burden. This imbalance puts local firms at a competitive disadvantage, making it harder for them to attract and retain top talent, as skilled professionals prefer opportunities with foreign employers offering higher take-home pay. This also discourages international companies from establishing a physical presence in Pakistan, as they can access the same talent pool remotely without dealing with the associated tax implications. Rectifying this disparity is essential to creating a level playing field and fostering a policy environment that supports both local industry growth and foreign investment. Pakistan stands at the cusp of a vital transformation in its IT sector, where it could emerge as a truly competitive player in the global digital economy. But this opportunity could slip away if the regulatory environment remains riddled with unclear tax rules, inconsistent incentives and constraints on digital freedoms. The authorities must pivot towards a more forward-looking, coherent and enabling policy framework that empowers innovation, protects digital rights, and attracts both talent and investment. Copyright Business Recorder, 2025
Business Wire
13-05-2025
- Business
- Business Wire
Standard Chartered Celebrates Winner of the 2025 Women in Tech Incubator Competition
NEW YORK--(BUSINESS WIRE)-- Standard Chartered Americas (the 'Bank') and the Zahn Innovation Center ('Zahn Center') at City College of New York ('CCNY') are proud to announce the winner of the 2025 Women in Tech ('WiT') Incubator Competition - an initiative designed to support and empower women entrepreneurs in the technology sector. The Women in Tech Incubator is more than a program – it's a platform for emerging entrepreneurs to access the resources, networks and support they need to develop their businesses and become leaders. This year's top honor goes to CareerDay, recognized for their innovative platform that empowers college students to discover and pursue fulfilling career paths through personalized, AI-driven roadmaps and interactive tools designed to maximize their undergraduate experience. Now in its 11th year, the Women in Tech Incubator continues to be a vital platform for female tech entrepreneurs, providing access to mentorships, resources, and networks that help bring transformative ideas to life. 'At Standard Chartered, we believe that promoting inclusion within teams and businesses helps to drive innovation and deliver excellence,' said Mandy DeFilippo, Chief Executive Officer, US and the Americas at Standard Chartered Bank. 'Our partnership with the Zahn Center reflects our shared commitment to creating meaningful opportunities for women in technology. The Women in Tech Incubator is more than a program – it's a platform for emerging entrepreneurs to access the resources, networks and support they need to develop their businesses and become leaders. We're proud to support CareerDay as they turn bold ideas into lasting impact.' As the grand prize winner, CareerDay will receive USD15,000 in seed funding to further develop and optimize their idea. The second-place prize of USD5,000 was awarded to EvalRx, a venture focused on transforming AI in healthcare by delivering unbiased data insights to improve outcomes for all. 'We're incredibly honored to be recognized as the winner of the Women in Tech Incubator Competition,' said Sheyla Perez of CareerDay. 'Winning this prize gives us the momentum to expand CareerDay and support even more students with personalized, AI-driven career roadmaps. The incubator gave us the resources to refine our vision, and now we're ready to turn that vision into impact at scale.' 'We're exceptionally proud of the talented entrepreneurs emerging from this year's Women in Tech Incubator,' said Kesia Hudson, Managing Director of the Zahn Innovation Center at the City College of New York. 'Their vision, resilience, and innovation reflect the best of what's possible when women are empowered to lead in tech. Our partnership with Standard Chartered continues to be a catalyst for change – helping us create a more inclusive and dynamic future for our students and the industry.' The WiT Incubator is among several programs under the Futuremakers initiative in the Americas. Other programs include partnerships with Bossgirls, Village Capital, Upwardly Global, Leadership Enterprise for a Diverse America, and Youth Business International. They all aim to empower the next generation by promoting greater economic inclusion. About the Women in Tech Incubator at the Zahn Innovation Center Formed in October 2014, the Standard Chartered Women in Tech Incubator program is an initiative that aims to support greater diversity in gender representation within the technology sector. The incubator program is a partnership with the Zahn Innovation Center at the City College of New York that provides support, guidance, and resources that early-stage women-led startups need to grow into successful businesses. This partnership has various levels of engagement and supports entrepreneurship among women across campus through: A mentorship network, including both Bank employees and local leaders in tech and government A Women in Entrepreneurship themed speaker series A newly renovated space housing the 'Standard Chartered Technology Incubator for Women Entrepreneurs' Resource Center Entrepreneurship courses and material to address entrepreneurship challenges About The City College of New York Since 1847, The City College of New York has provided a high-quality and affordable education to generations of New Yorkers in a wide variety of disciplines. CCNY embraces its position at the forefront of social change. It is ranked #1 by the Harvard-based Opportunity Insights out of 369 selective public colleges in the United States on the overall mobility index. This measure reflects both access and outcomes, representing the likelihood that a student at CCNY can move up two or more income quintiles. Education research organization Degree Choices ranks CCNY #1 nationally among universities for economic return on investment. In addition, the Center for World University Rankings places CCNY in the top 1.8% of universities worldwide in terms of academic excellence. Labor analytics firm Lightcast puts at $3.2 billion CCNY's annual economic impact on the regional economy (5 boroughs and 5 adjacent counties) and quantifies the 'for dollar' return on investment to students, taxpayers and society. At City College, more than 15,000 students pursue undergraduate and graduate degrees in eight schools and divisions, driven by significant funded research, creativity and scholarship. In 2023, CCNY launched its most expansive fundraising campaign, ever. The campaign, titled ' Doing Remarkable Things Together ' seeks to bring the College's Foundation to more than $1 billion in total assets in support of the College mission. CCNY is as diverse, dynamic and visionary as New York City itself. View CCNY Media Kit. About Standard Chartered We are a leading international banking group, with a presence in 52 of the world's most dynamic markets. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, here for good. Our history in the US dates back to 1902, and we are currently present in nine locations throughout the Americas. Our Americas franchise focuses on financial institutions and select corporations and plays a key role in facilitating trade and investment flows between the Americas and Asia, Africa, the UK and Europe and the Middle East. Standard Chartered PLC is listed on the London and Hong Kong stock exchanges. For more stories and expert opinions please visit Insights at Follow Standard Chartered on X, LinkedIn, Instagra m and Faceboo k. About Futuremakers by Standard Chartered Futuremakers by Standard Chartered (Futuremakers) is Standard Chartered Bank's global youth economic empowerment initiative to tackle inequality and promote greater economic inclusion in the Group's markets. Futuremakers supports disadvantaged young people, especially women and people with disabilities, to learn, earn, and grow. By 2030, Futuremakers aims to create and sustain 140,000 jobs by enabling young entrepreneurs and job-seekers to achieve economic power and participation.
