The Pakistan Software Export Board is a branch of the Ministry of Information Technology. They have partnered with the Bank of Punjab to introduce a new tool called the “Freelance Digital Account and Card.”
This tool allows Pakistani freelancers to create digital accounts in both rupees and dollars.
Syed Junaid Imam, a member of the IT department, attended an event in Islamabad as a special guest to introduce this new tool, along with Zafar Masood, President and CEO of the Bank of Punjab, other authorities, and a large number of freelancers.
During the event, Syed Junaid Imam emphasized the important role that freelancers play in the growth of the IT sector. It stated that the nation’s IT exports are aiming for $15 billion.
He called for commercial banks to offer facilities and banking products for IT firms. It is independent contractors to help achieve this goal. The Ministry of IT is already playing its role in this regard.
Digital Accounts
The newly introduced tool is a positive initiative, as it will allow freelancers to open digital accounts in both rupees and dollars from the comfort of their homes.
However, the Ministry has acknowledged that there is a lack of government incentives for freelancers. It is necessary to create a favorable business environment for them.
It is proposed that the incentives available for the IT sector be extended to the freelance sector. The Ministry has recommended fiscal incentives for freelancers in consultation with prominent freelancers and freelancing community representatives.
These proposals will be presented for inclusion in the relevant documents, such as the Finance Bill. The regulations of the State Bank of Pakistan (SBP) and the Securities & Exchange Commission of Pakistan, after due process.
Freelancers registered with PSEB will have an income tax holiday on export revenue until 2030, subject to receipt of income/revenue through formal banking channels in the specific purpose codes assigned by SBP.
PSEB
PSEB will also introduce an incentivized registration fee package for freelancers, along with easier access to PSEB programs and initiatives, including fee and subsidized training, certifications, subsidized office space at Software Technology Parks (STPs) across the country, and access to international marketing and matchmaking opportunities.
Furthermore, SECP will offer a 20 percent registration fee discount for PSEB-registered freelancers. And, if they choose to register a single-member company.
In terms of non-fiscal incentives, Visa facilitation will be provided for PSEB-registered freelancers whose export income/revenue for the last three years exceeds $5000 for each year and remitted through formal banking channels.
Fast track and simplified opening of foreign currency bank accounts for PSEB-registered freelancers will be introduced. Along with retention of 365 percent foreign exchange in these bank accounts.
The proposal also includes establishing technology business branches of commercial banks in at least six Pakistani cities, where technology is aware, with SBP and commercial banks providing relevant training for the staff of these branches.
Conclusion
In conclusion, the partnership between the Pakistan Software Export Board and the Bank of Punjab has introduced a valuable tool that allows freelancers to open digital accounts in both rupees and dollars.
This initiative, along with the proposed incentives, will create a more favorable business environment for freelancers and contribute to the growth of the IT sector in Pakistan.
