Sluggish internet, firewalls hindering IT export growth, says minister

WEB DESK: The persistent issue of sluggish internet speeds and increasing public frustration has drawn the attention of Commerce Minister Jam Kamal, who warned that the existing firewall system and slow internet are significantly hindering the growth of Pakistan’s IT sector exports.

In a briefing to the National Assembly Standing Committee on Commerce, chaired by Jawad Hanif Khan, Minister Kamal emphasised that the matter of declining IT exports will be urgently addressed in the federal cabinet.

He also outlined an ambitious goal to elevate Pakistan’s export target to $60 billion by the fiscal year 2029. To achieve this, the government plans to implement several measures, including reducing production costs, lowering policy rates, and cutting tariffs.

Additionally, the minister discussed plans to attract investment from Gulf countries and other regions to further bolster exports. He highlighted the potential to benefit from China’s industry relocation, alongside investments from Russia and Gulf nations. The strategy to enhance exports will focus on promoting trade and maximising the efficiency of trade officers.

Raising exports to $60 billion is a cornerstone of the Prime Minister’s broader economic plan, which introduces a four-tier approach to export growth. Kamal noted that, while neighbouring countries offer loans with policy rates between 7 per cent and 8 per cent, Pakistan is exploring options to provide long-term lease arrangements for land in export processing zones.

According to Mettis Global, Kamal also pointed out that 600 tariff lines had been subjected to additional customs duties in the last budget, a matter currently under review. However, he cautioned that due to the ongoing IMF program, certain concessions might not be feasible.

The standing committee has requested a detailed report on the tariff policy board’s recommendations and the strategies being considered to boost exports.

Committee Chairman Jawad Hanif Khan stressed the critical importance of accelerating export growth, noting that 48 per cent of the country’s revenue is currently reliant on imports.

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