Strategically-located in South Asia, Pakistan is at the crossroads between East and West Asia. Pakistan's geographical location, a rapidly expanding transportation and communications infrastructure, and conducive business environment make it an investor-friendly destination.
The Government of Pakistan has provided a reliable IT infrastructure and its package of incentives have been instrumental in the IT industry's development. As a result,
an increasing number of foreign IT companies have chosen Pakistan for their outsourcing operations.
Pakistan’s IT exports have grown by 70% over the last three years since 2013. As of 2016, Pakistan’s IT exports are estimated to be around $2.5 billion a year at present including exports generated by both IT companies and freelancers. Domestic revenue is another $500 million (Rs. 52.5 billion). Hence, revenue of IT industry is estimated to be around $3 billion a year at present.
Some incentives for investment in Pakistan’s IT sector are as follows:
- Up to 70% savings on annual operational costs when compared with North America or Europe
- Provision of low rent space in Software Technology Parks (STPs), with fiber-optic connectivity, libraries and conference rooms
- 100% ownership of equity allowed to investing foreign IT/ITeS companies
- Income tax exemption on IT exports revenue till June 2019
- 100% repatriation of profits allowed to IT companies
- Seven year tax holiday for venture capital funds
- Accelerated depreciation of 30% on computer equipment
- The State Bank of Pakistan (SBP) has allowed banks to open Internet Merchant Accounts
- According to Pakistan Telecom Authority, there are more than 136 million mobile subscribers and more than 40 million broadband users as of December 2016
- Availability of instant, reliable and high-speed connectivity
- Over 85% of telecommunication infrastructure is on fiber-optic cables
- Internet access is available in over 2000 cities/towns across Pakistan
For IT outsourcing and investment opportunities,