Federal Budget 2024-25: Major Boost for IT and Telecom Sector

About Federal Budget

The federal budget for 2024-25 in Pakistan has introduced significant investments in the IT and telecom sectors. This new budget proposes a major increase in funds to support ongoing and new projects, reflecting the government’s priority to strengthen these sectors. Here’s a detailed overview:

Key Highlights

• Substantial Budget Increase: The development budget for IT and telecom is proposed to increase by over Rs21 billion.
• Total Allocation: The new budget proposes a total allocation of Rs27.43 billion for the IT and telecom sectors, up from Rs6 billion in the current financial year.

Budget Breakdown

Funds for Ongoing and New Projects

• Ongoing Projects: Rs21 billion allocated.
• New Initiatives: Rs6.28 billion allocated.

Specific Project Allocations

• Digital Economy Expansion: Rs3.5 billion allocated, with support from the World Bank.
• Innovation in IT: Rs1 billion set aside for a project aimed at fostering innovation, with a total project cost of Rs9.95 billion.
• National Assembly Digitization: Rs50 million allocated for a project worth Rs400 million.
• Broadcast System Upgrade: Rs50 million was allocated for the National Assembly’s broadcast system upgrade.
• IT Park in Karachi: Rs6.78 billion allocated.
• Technology Park in Islamabad: Rs9.92 billion allocated.
• Prime Minister’s IT Startups Project: Rs1.80 billion allocated to boost entrepreneurship and innovation.
• Cybersecurity Enhancement: Rs1 billion allocated under the Digital Pakistan initiative.

Surge in IT Exports

Significant Growth

• Increase in IT Exports: There was a 62.3% increase in IT exports in April this year compared to the same period last year.
• Factors for Growth:
• Policy Reforms: Business-friendly policies introduced by the Special Investment Facilitation Council.
• Currency Stability: Stability of the local currency.
• Freelancer Earnings: Policies allowing freelancers to deposit foreign earnings into local bank accounts.

State Bank Measures

• Retention Limit for IT Companies: The State Bank of Pakistan relaxed the retention limit for IT companies from 35% to 50%, boosting exports.

Impact of IT Sector Investment

Educational and Economic Contributions

• IT Graduates and Freelancers: Over 25,000 IT graduates and freelancers contributed to the surge in foreign exchange by earning from foreign companies.

Priority Sector

• Special Investment Facilitation Council: The IT sector remains a top priority, with assurances of its reliability and importance for future growth.

Conclusion

The federal budget 2024-25 reflects a strong commitment to advancing Pakistan’s IT and telecom sectors. The substantial increase in the development budget is set to support various projects aimed at enhancing the digital economy, fostering innovation, and improving the overall technology infrastructure. This, combined with the notable surge in IT exports, highlights the sector’s growing role in Pakistan’s economic landscape.

For more details on the federal budget allocations and IT sector growth, refer to the following sources: World Bank, BBC, and the State Bank of Pakistan.

This structured approach offers a clear understanding of the budget allocations and their potential impacts on Pakistan’s IT and telecom sectors.

nmshah.virgo

I am an Post Graduate and a passionate Blogger, who loves to share tips on Blogging, Digital Marketing, Passive Income along-with Finance Tax Budget and ERP and also interested in daily news updates with passion and consistancy.