At a recent high-level meeting of the Prime Minister’s Committee on IT Export Transfers, a stark fact emerged: only 38,000 of Pakistan’s 2.32 million freelancers currently have bank accounts in the country. The revelation has highlighted critical bottlenecks in capital flow to the booming IT sector.
The meeting, chaired by Finance Minister Muhammad Aurangzeb, emphasized the untapped potential of the IT industry as a major contributor to Pakistan’s foreign exchange reserves. According to a statement issued by the Finance Department, the participants discussed strategies to enhance the flow of IT export remittances and address industry challenges.
Aurangzeb highlighted the importance of the IT sector, describing it as the “cornerstone of foreign exchange generation”. He stressed the need for a collaborative approach, consistent policies and targeted reforms to unleash the full potential of the sector and encourage the repatriation of foreign revenues.
While Pakistan’s IT exports are growing steadily, the meeting noted that a significant portion of the revenue earned by freelancers and IT companies remains unearned. This problem is exacerbated, according to the government, by the decline in the number of freelancers who have access to formal banking channels.
Of the 2.32 million self-employed workers – a community that contributes 15% of the country’s IT exports – only 38,000 have opened bank accounts. While 500 new accounts are being added weekly, retaining these account holders and motivating others to join the formal banking system remains a major challenge.
The State Bank of Pakistan (SBP) Governor briefed the committee on measures that the central bank can take to address these issues. These measures include simplifying account opening procedures, launching awareness campaigns, strengthening complaints resolution mechanisms, and giving priority to the information technology sector within banking frameworks.
The committee also explored leveraging Roshan Digital Account (RDA) to facilitate remittances to IT companies and freelancers. Participants stressed the need to integrate global payment gateways such as PayPal, which remains inaccessible in Pakistan, and develop similar local solutions. These initiatives aim to empower IT professionals, enhance their global competitiveness, and simplify the process of repatriating profits.
Participants stressed the importance of consistent tax breaks for freelancers and addressing the classification of remote workers and small IT companies to improve the business environment. Streamlined procedures and regulatory transparency have been identified as critical steps towards retaining IT professionals within the formal financial system.
It is important to note that according to the Independents Association, Pakistan’s foreign exchange liquidity crunch and poor foreign exchange interest rates, offered by local banks, are one of the most important reasons why Pakistan is not seeing more remitted payments.
However, to address these issues, the committee decided to establish a working group that would include representatives of the Federal Board of Revenue (FBR), State Bank of Pakistan (SBP), Ministry of Information Technology, Pakistan Software Companies Association (P@SHA), and Liberal Professions Association.
The group’s mandate includes streamlining processes for freelancers and IT companies and identifying key bottlenecks.
Pakistan’s IT sector has demonstrated resilience and potential for accelerated growth despite systemic challenges. However, the slow pace of financial integration and the lack of global payment solutions continue to hamper its progress. The reforms discussed at the meeting, if implemented effectively, could position the sector as a key driver of foreign exchange inflow and economic stability.
With over two million freelancers waiting for better financial and political support, the decisions taken by this committee could shape the future course of Pakistan’s IT landscape.