Information Technology Policy

The Government will play the role of a moderator, facilitator and an enabler, rather than a director, in the local IT industry's development.

Computer Software and Information Technology (IT) have been declared as Industry and placed in Category 'B' of Industries.

Zero percent customs duty on import of IT related machinery and equipment as listed at Annex.

Tax relief: First year allowance @ 90% of machinery cost (50% on equipment for IT services).

The rate of depreciation on computer equipment is 30%.

Information Technology (IT) enjoys the status of "industry".

The cost of Internet bandwidth has been drastically reduced by 65%.

To facilitate the private sector IT telecom industry and to enhance the investor's confidence in the Government, processing period for license applications in the deregulated sector has been reduced to 7 days.

In order to deliver efficient IT infrastructure, PTCL, would now provide international bandwidth and Internet connectivity to the ISPs and other corporate customers within 4 to 8 weeks.

As a first step towards, Electronic Commerce, the State Bank of Pakistan (SBP) has allowed banks to open Internet Merchant Accounts within Pakistan.

Internet delivery on Cable TV has been permitted which would result in substantial increase in the Internet usage.

Universal Access to the Internet even to non connected areas at the cost of a local using the unique '131' Universal Internet Numbers of ISPs has been extended.

Call Centers, which are important potential source of foreign exchange earnings and employment creation, have been allowed to establish in the private sector.

Computer networking and majority of IT equipment has been exempted from custom duties.

Income tax holiday for the IT Training Institutions has been extended by another five years.

Income of computer training institutions set up to 30-06-2005 is exempt from Income Tax.

Banks are allowed to invest in the form of equity in dedicated venture.

Software companies are allowed to retain 35% of their export earning in foreign exchange to meet the expenditure on purchase of hardware/software, foreign travel, marketing and hiring of consultants.

Tax exemption on export of software for 15 years.