In a recent high-level meeting of the Prime Minister’s Committee on IT Export Remittances, a stark reality emerged: only 38,000 of Pakistan’s 2.32 million freelancers currently have bank accounts in the country. The revelation has spotlighted critical bottlenecks in capital flow for the burgeoning IT sector.
The meeting, chaired by Finance Minister Muhammad Aurangzeb, emphasised the untapped potential of the IT industry as a key contributor to Pakistan’s foreign exchange reserves. According to a statement released by the Finance Division, participants deliberated on strategies to enhance the inflow of IT export remittances and address the industry’s challenges.
Aurangzeb highlighted the importance of the IT sector, calling it a “cornerstone of foreign exchange generation.” He stressed the need for a collaborative approach, consistent policies, and targeted reforms to unlock the sector’s full potential and encourage repatriation of foreign earnings.
While Pakistan’s IT exports are steadily growing, the meeting noted that a significant portion of the revenue earned by freelancers and IT firms remains unmerited. This issue, as per the government, is compounded by the low number of freelancers with access to formal banking channels.
Of the 2.32 million freelancers—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, retention of these account holders and incentivising others to join the formal banking system remain significant challenges.
Governor of the State Bank of Pakistan (SBP) updated the committee on measures that the central bank can take to address these issues. These measures include, streamlining account opening procedures, launching awareness campaigns, enhancing complaint resolution mechanisms and prioritising the IT sector in banking frameworks.
The committee also explored leveraging the Roshan Digital Account (RDA) to facilitate remittances for IT companies and freelancers. Participants highlighted the need to integrate global payment gateways like PayPal, which remain inaccessible in Pakistan, and to develop similar homegrown solutions. These initiatives aim to empower IT professionals, enhance their global competitiveness, and simplify the process of repatriating earnings.
Participants emphasised the importance of consistent tax exemptions for freelancers and addressing the classification of remote workers and small IT firms to improve the business environment. Simplified procedures and regulatory transparency were identified as crucial steps toward retaining IT professionals within the formal financial system.
It is important to note, that according to the freelancers association, Pakistan’s forex liquidity crisis and bad rates on forex, given by the local banks are one of the top reasons due to which Pakistan does not see more payments remitted.
Nonetheless, to tackle these issues, the committee decided to establish a working group comprising representatives from the Federal Board of Revenue (FBR), State Bank of Pakistan (SBP), Ministry of IT, Pakistan Software Houses Association (P@SHA), and the Freelancers Association.
The group’s mandate includes simplifying processes for freelancers and IT firms and identifying key bottlenecks.
Pakistan’s IT sector has shown resilience and potential for exponential growth despite systemic challenges. However, the slow pace of financial integration and the lack of global payment solutions continue to impede its progress. The reforms discussed in the meeting, if implemented effectively, could position the sector as a major driver of foreign exchange inflow and economic stability.
With over 2 million freelancers awaiting better financial and policy support, the decisions taken by this committee could shape the future trajectory of Pakistan’s IT landscape.
