Pakistan’s digital transformation: PM unveils ambitious IT expansion

Caretaker Prime Minister Anwaar-ul-Haq Kakar on Thursday said that with a focus on training human resources as per contemporary requirements, enabling the environment, and imbibing the spirit of entrepreneurship in the youth, the true potential of Pakistan̵7;s IT sector could be harnessed. “This will turn around and uplift our economy in the short to medium term, Inshallah… I assure you of the government’s full support to help you explore the untapped potential in Pakistan̵7;s IT sector,” he said, addressing a Tech Destination Pakistan event that featured the launch of E-Rozgar Centers in the country. Through its digital policy, he said the government envisioned bringing economic prosperity and citizen empowerment through digital transformation as it worked on the vision of “Digital Pakistan” through multiple cross-sectoral digital transformation initiatives. He said the government was taking every step possible to facilitate the IT sector by creating an enabling environment and an ecosystem through a broad range of legislative, policy, regulatory, and operational initiatives focusing on inclusion to help reap the full benefits of digitalization. He said the IT sector was the government’s focus for achieving sustainable economic development and realizing the full potential of technological advancement. The prime minister said Pakistan had recently experienced significant growth in the information and communication technology sector. He added that the country’s ICT industry has become an essential contributor to the economy, generating revenue, attracting FDI, and creating jobs. “We are exporting IT and IT-enabled services to more than 190 countries. Our IT industry is an integral part of the knowledge economy, thereby earning its reputation as a leading offshore outsourcing destination through innovation, availability of talent, government incentives, and other initiatives for the IT sector. With over 90% Tele-density, Pakistan was recently ranked as the 2nd most financially attractive destination worldwide for offshore outsourcing IT and IT-enabled Services (ITeS). Pakistan was also ranked as the third most popular country for freelancing,” he said. Prime Minister Kakar said the Special Investment Facilitation Council (SIFC) and its various committees had already started to actively deliver and perform their role. “Among other priority sectors, the inclusion of the IT Sector under the umbrella of SIFC demonstrates our government’s commitment to further promoting the ICT industry,” he added. “We believe that the development of the IT sector will bring huge benefits to the nation. It will help create more employment opportunities, increase revenues, lift service sector exports, and boost foreign reserves.” He said that Pakistan was set to become a knowledge-based economy with its talented and skilled human resource base, digital infrastructure, entrepreneurial spirit, and vision for digital transformation. The prime minister told the gathering of diplomats, civil and military officers, industry leaders, freelancers, and entrepreneurs that the Pakistan Software Export Board (PSEB) had increased the number of Software Technology Parks (STPs) from eight across Pakistan to 30. “We are establishing another 40 Software Technology Parks in the smaller cities across Pakistan,” he added. Highlighting the milestones achieved by the government, he mentioned 50% foreign exchange retention, up-skilling and re-skilling of 100,000 individuals, centralized test for IT students, establishment of 10,000 Pakistan E-Rozgar Centers, Pakistan Startup Fund, approval of Digital Economy Enhancement Project (DEEP), approval of Telecom Infrastructure Sharing Framework, Establishment of Telecom Appellate Tribunal, and National Space Policy. He said the government’s efforts led Pakistan to emerge as one of the top online gig markets, with freelancers contributing from remote areas. “The establishment of E-Rozgaar/Co-working centers across Pakistan, supported by interest-free loans and assistance in training costs, aims to enhance partner capacities. This initiative aims to create an ecosystem where talented individuals can thrive. These spaces will not only serve as physical locations for work but also as hubs for knowledge exchange, skill development, and networking,” he remarked. In his address, Federal Minister for IT and Telecommunication Dr Umar Saif said the event continued the journey initiated six months ago under the Tech Destination initiative. He said the government was well on its way to achieving the goals as substantial work had been done. He said the government, under the SIFC, had taken radical steps to facilitate the IT firms, which helped increase IT revenue by 13 percent during the last month. He called for the promotion of specialized and globally competitive skills to make the youths immediately employable by the IT firms after their graduation. He said the 65 E-Rozgar centers, which had trained 80,000 people so far, already worked in Punjab. He said to scale up the program, 10,000 E-Rozgar Centers would be opened in the country and given the status of Special Technology Zones to make them enjoy tax exemptions. He told the gathering that starting in February, the government would launch a pilot project initially to enable 10,000 freelancers to receive funds from PayPal, which would be expanded later on. Federal IT Secretary Hassan Nasir Jami said within a short period, the IT ministry had introduced multiple initiatives to enhance IT exports and facilitate freelancers. He said the IT ministry was committed to developing an IT ecosystem and called upon entrepreneurs, students, and developers to take advantage of opportunities available.