Prime Minister Imran Khan said on Thursday that if the IT industry was incentivized and enabled, it might help Pakistan overcome its current account deficit by increasing exports and solving the issue of unemployment.
The prime minister made his decision while speaking at the inaugural ceremony of the Lahore Technopolis, a unique technological zone (STZ).
“The project would help provide incentives to the tech industry and bring ease to businessmen, in accordance with the government’s vision,” Khan said.
The STZs, which are being built around the country, will include Science and Technology Parks, manufacturing units, research and development centres for global tech corporations, and software houses. Universities, incubators, accelerators, and other ecosystem stakeholders would be included.
The prime minister launched the Islamabad Technopolis earlier this year, before Lahore.
“The IT sector would also address the issue of unemployment of the youth, particularly the women, besides boosting the country’s exports,” the PM stated.
He went on to say that while all businesses suffered during the Covid-19 epidemic, the earnings of tech firms like Google, Amazon, and others skyrocketed.
“Unfortunately, Pakistan lagged behind in the sector despite having ideal conditions, including a huge population of young people,” he said, adding that within 15 to 20 years, Indian tech exports boomed to $150 billion while Pakistan’s could reach only $2 billion.”
The prime minister also stated that the country has begun to see economic progress. He said that the current account was disrupted due to the import of machinery, which depreciated the local currency and forced the government to seek loans from the IMF.
“The country can only come out of this cycle by boosting its exports and allowing wealth creation,” the premier said.
“China achieved remarkable progress and steered 700 million people out of poverty by eliminating corruption and jailing over 450 ministerial-level people and enhancing exports,” Khan remarked, offering an example of the Chinese economic model.
The prime minister advocated for reorienting the government and the population’s focus toward increasing exports and wealth development.
He said that by using its 12 climatic zones, the country may lower its import expenditure for items such as edible oil through indigenous palm oil production.
The prime minister referred to them as Pakistan’s most valuable asset and emphasised the importance of abroad Pakistanis in investment and wealth development in Pakistan.
“China and India had also first attracted their own firms operating abroad to invest at home,” he said. “Pakistani individuals, as well as the firms operating abroad including the Silicon Valley, were interested to invest in Pakistan which necessitated incentives and ease of doing business.”
Imran Khan also stated that the goal of creating Technopolis projects in Lahore, Karachi, and K-P was to bring Pakistan into the tech race and offer jobs for the people.
Previously, the prime minister handed licences to the enterprises that will be functioning in Technopolis.
The ceremony also witnessed the signing of a Memorandum of Understanding (MoU) for a $300 million investment in the construction of three more technological zones around the country.
According to CM Buzdar, Lahore was chosen as the Technopolis due to the city’s universities, other technical institutes, and businesses.
“The project would help carry out technology-based research and studies,” stated the provincial chief executive.
The government provided a 10-year tax break to enterprises working in Technopolis in order to encourage investment. Companies from the United States, Canada, China, and Australia were expressing interest in investing here, he noted.
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