The Pakistan Software Export Board, a component of the Ministry of Information Technology, just introduced a new tool called “Freelance Digital Account and Card” in collaboration with the Bank of Punjab, according to the most recent news. The ability for Pakistani independent contractors to open a digital account in both rupees and dollars is without a doubt an excellent feature.
The Pakistan Software Export Board, a subsidiary of the Ministry of Information Technology, has launched this tool known as “Freelance Digital Account and Card” in collaboration with the Bank of Punjab. Freelancers would be able to open a digital account with this feature in both dollars and rupees.
According to media reports, President and CEO Zafar Masood of the Bank of Punjab, senior officials, and a sizable number of independent contractors attended an event held at a neighbourhood hotel in Islamabad with Syed Junaid Imam, a member of the IT department, as a special guest.
Syed Junaid Imam, who spoke at the ceremony, stated that henceforth independent contractors will be able to open accounts in dollars and rupees from the convenience of their own homes. Additionally, he emphasised the vital role that independent contractors had in the expansion of the IT sector and claimed that the country’s IT exports were competing for $15 billion in revenue.
In order to reach the goal of $15 billion set by the Pakistani prime minister, he suggested that commercial banks offer facilities and their banking products to IT companies and independent contractors. In this sense, the IT Ministry is already performing its duty.
Commercial banks are reportedly required to provide services and financial products to IT companies and independent contractors. The IT Ministry is already contributing to the Ministry’s efforts to reach the 15 billion dollar objective set by the Pakistani prime minister. The newly released tool is a wonderful idea because it will help all independent contractors open digital accounts in both dollars and rupees. Watch to learn what the IT Ministry’s plan of action is to reach its $1 billion objective. Watch this space for additional developments.
The Ministry has acknowledged that there should be more specific government incentives for independent contractors in order to foster a supportive business environment. It is suggested that the incentives offered to the IT industry also apply to the freelance industry.
The working committee of eminent freelancers and leaders of the freelancing community have advocated financial incentives for freelancers. After following the proper procedures, the Ministry will suggest that these ideas be included in the pertinent documents, such as the Finance Bill and the rules of the State Bank of Pakistan (SBP) and the Securities & Exchange Commission of Pakistan, etc. Up to 2030, freelancers who have properly registered with PSEB would not be subject to income taxes on their export-related earnings, provided that they receive their earnings through official banking channels using the SBP-designated specific purpose codes.
Additionally, PSEB will make its programmes and initiatives easier to access for freelancers, including fee and subsidised training, certifications, subsidised office space at Software Technology Parks (STPs) across the nation, as well as providing access to international marketing and matchmaking opportunities. In accordance with the idea, if PSEB-registered freelancers choose to register a single-member company, SECP will implement a 20 percent registration fee rebate.
The provision of visa facilitation for PSEB registered freelancers whose export income/revenue for the last three years has exceeded $5000 for each year and has been transferred through official banking channels is one of the non-fiscal incentives that is being proposed.
For PSEB registered freelancers, creating a foreign currency bank account is expedited and made simple, and the currency is retained at a rate of 365 percent. It is suggested that commercial banks open technology business branches in at least six locations in Pakistan, where commercial banks and SBP will collaborate to provide staff at these branches with the necessary training.