ISLAMABAD - Just three months before the expiry of tax exemption period for IT industry, Pakistan Software Export Board has finally started efforts to motivate IT companies to remit more earnings to Pakistan instead of relocating to another country or keeping their earnings abroad.

Government incentives to the international outsourcing community including 100 percent equity ownership, 100 percent repatriation of capital and dividends, and income tax exemption for IT exports is ending in June 2016. According to sources government is in no mood to extend it.

It is feared that after June 2016, IT exports, as claimed by Ministry of IT, will nosedive, and companies will re-locate to other lucrative destinations of the world. The flow of remittances from off-shore IT companies is also likely to shrink.

According to Ministry of IT officials, Minister for IT has directed Pakistan Software Export Board to come up with solutions.

State Minister Anusha Rehman has directed to prepare a summary for tax exemption on IT exports beyond June 2016, to motivate IT companies to remit more of their earnings to Pakistan instead of relocating to another country and keeping their earnings abroad”, said an official of Ministry of IT. This was directed during the 32nd meeting of the Board of Directors of Pakistan Software Export Board held on Tuesday.

During meeting, according to officials, MD PSEB informed the board that PSEB has launched a new counseling center to guide and mentor IT startups and SMEs as well as IT graduates and also placed Contact information for counseling center on PSEB’s website.

He also apprised the board that five IT companies will be participating with PSEB in the upcoming Mobile World Congress in Barcelona where these companies will showcase their expertise in mobile applications and other IT services.

The Board was also updated that interim report of feasibility study regarding establishment of first IT park in Islamabad, has been submitted by Korean consultants and that final feasibility will be submitted by March. The Minister said that after approval of this project by ECNEC, ground breaking ceremony of IT Park will be scheduled in summer of 2016.