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Express Tribune
16-06-2025
- Business
- Express Tribune
Budget: will it power tech economy or stall its promise?
Listen to article The federal budget for FY 2025-26 arrives at a critical juncture. As Pakistan grapples with economic fragility, youth unemployment and declining investor confidence, the technology sector still offers one of the few credible paths towards sustainable growth. But even this promise risks fading, choked by a familiar cycle of lofty declarations with little follow-through. For years, slogans like Digital Pakistan, IT exports and Startup Pakistan have echoed across stages and press conferences. Yet these remain ceremonial, rarely backed by budgetary or institutional commitment. The FY26 budget, like many before it, acknowledges the sector but stops short of empowering it. References to digitisation and startups are there but feel like afterthoughts. There is no substantial allocation to expand fibre broadband or improve rural connectivity. These are foundational requirements for any meaningful digital economy. The Universal Service Fund remains underpowered. Key areas such as artificial intelligence, cloud computing and cybersecurity are barely acknowledged. These are not futuristic ambitions. They are current global imperatives. The neglect of public cloud infrastructure is particularly telling. Around the world, governments are investing in sovereign cloud to ensure data control, cybersecurity and efficient citizen services. Meanwhile, Pakistan continues to rely on outdated hosting and procurement models while spending heavily on foreign software licences. We have not created the policy or regulatory environment that would attract global players like Microsoft, Oracle or Amazon to establish localised cloud zones in the country. This is not just about reducing costs. Localising global cloud infrastructure means protecting national data, supporting critical fintech and public services, improving cybersecurity and restoring investor confidence. Countries like Qatar, Saudi Arabia and even Kuwait have been able to achieve this successfully. Pakistan, despite its population and potential, has not. The reason is not capability. It is the lack of political will and policy coherence. To move forward, fiscal incentives are not enough. We need a complete overhaul of our licensing systems, a clear cloud procurement framework and enforceable data protection policies that support international standards and welcome strategic investment. Our underperforming technology exports are another missed opportunity. Despite talent and diaspora strength, Pakistan's IT and IT-enabled services exports remain flat at around $3 billion. Delegations continue to travel to international expos labeled as promotion, yet few convert into meaningful outcomes. We lack market intelligence, follow-up mechanisms and synergy with embassies or trade bodies. The country must shift from exhibition-based engagement to targeted market expansion. That means using data to identify high demand regions, strengthening diaspora commercial diplomacy and aligning visa, trade and marketing policies accordingly. Forex Retention Cards and a robust Digital Export Facilitation Portal can reduce friction and support growth. Startups in Pakistan also remain underserved. Early stage capital is scarce. Regulatory inconsistency deters innovation. Public innovation agencies like Ignite are underfunded. Gender inclusive policy support is largely symbolic. And there is minimal room for experimentation in areas like fintech, healthtech, agritech or education technology. Pakistan needs a government-backed Tech Growth Fund, tax holidays for early stage startups and regulatory sandboxes that allow innovation to mature. Grants for women-led ventures are not just desirable, they are essential if we want to build an inclusive technology economy. All of this is complicated by a harsh and fragmented tax regime. Advance income taxes, overlapping provincial levies and ambiguous procedures punish digital businesses. Freelancers and software exporters struggle with remitting earnings. The FY26 budget has ignored these fundamental friction points. It is time to reinstate long-term tax exemptions for digital exporters, introduce zero rating for in-house developed software and unify digital taxation through a single window. Otherwise, we risk driving our best talent out of the country while chasing token foreign exchange. Behind these gaps is a more systemic failure. There is no central authority responsible for driving digital transformation across government. Ministries and agencies continue to operate in silos, leading to duplicated projects, inconsistent platforms and wasted resources. The establishment of a Central Digital Governance Authority is not a luxury. It is a national need. This body must have legal authority and cross-institutional mandate to drive implementation, track performance and ensure accountability across public sector initiatives. Another missed opportunity is talent development. The budget refers to skills but offers no strategy to future proof the workforce. What we need is not more unstructured training but a national education model aligned with global demand. Leading tech nations invest in talent as their core asset. Pakistan has the youth but not the planning. A National Digital Skills Fund must be created in partnership with global tech providers such as Microsoft, Cisco and AWS. The school curriculum must be upgraded to embed STEM skills and computational thinking. Skilling must be scalable, industry driven and outcome based. We cannot outsource this to non-profits and hope to compete globally. In the end, the FY26 budget appears more focused on fiscal optics than digital transformation. It may satisfy IMF checklists but it does little to address the urgency of economic reinvention. Other nations are building cloud parks, launching national AI strategies and attracting tech investment at scale. We are still debating whether digital transformation is viable. It is not just viable. It is vital. Pakistan's technology economy can be the engine that drives us out of crisis. But engines need fuel, direction and commitment. That means infrastructure. That means policy. That means institutional leadership. We must move from ceremonial launches to systemic reform, from scattered events to connected ecosystems and from policy talk to measurable performance. The world will not wait for us to catch up. Neither will our young people. The time to act was yesterday. The time to recover it is today. The writer is ex-MPA of the provincial assembly of Sindh, tech professional and education and child rights activist
Express Tribune
28-05-2025
- Business
- Express Tribune
IT sector seeks policy continuity
Pakistan Freelancers Association Chairman Ibrahim Amin cautioned against increasing tax rates on freelancers, who already pay taxes on every transaction in addition to fees charged by freelancing platforms and payment gateway service providers. photo: REUTERS Listen to article Key stakeholders of the IT industry have urged the government to continue reforms and extend incentives for the significant growth of the IT sector and its allied fields to enhance export earnings and create jobs for youth, in line with the objectives of the futuristic "Uraan Pakistan" economic plan. They called for incorporating their recommendations in the upcoming federal budget 2025-26 to enable the IT sector to grow faster, generate more employment opportunities, and contribute more effectively to strengthening the national economy. They also stressed the need for continuity of existing policies and resolution of regulatory and tax-related challenges in the finance bill for 2025-26, particularly for the IT industry and freelancers, to help accelerate sectoral growth and development. Khushnood Aftab, Convener of the IT Committee at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), recommended that the government reduce import duties on essential hardware components such as RAM, SSDs, motherboards, batteries, and displays. This would support the local assembly of fully built imported devices like laptops, desktops, and tablets, fostering local value addition and attracting investment in domestic production facilities. He noted that increased support for the localisation of computer devices and hardware accessories could help Pakistan conserve foreign exchange, create skilled jobs, and position itself as a competitive exporter in regional markets. The locally branded IT hardware sector, he added, deserves focused attention as it directly aligns with the "Made in Pakistan" initiative and the broader Digital Pakistan vision. Furthermore, he emphasised the urgent need for the fair inclusion of local brands in government procurement, which would encourage scale, improve quality, and support domestic industry without compromising standards. Pakistan must also prepare for the growing demand for AI-integrated hardware and edge computing devices, he said, which could be achieved through the introduction of targeted Research and Development (R&D) tax credits and innovation grants to support companies working on emerging technologies within the country, said Khushnood Aftab, who is also Chairman Viper Group. Muhammad Umair Nizam, Senior Vice Chairman of the Pakistan Software Houses Association (P@SHA), said the IT sector is a key driver of economic growth, job creation, and foreign investment. He stressed that extending the Final Tax Regime (FTR) for the next decade would provide the policy stability necessary to encourage reinvestment and help Pakistan maintain its competitive edge in global markets. He also urged the government to harmonise the definitions of IT and Information Technology Enabled Services (ITeS) across federal and provincial tax laws to ensure consistency, eliminate jurisdictional ambiguities, and reduce compliance burdens. A unified framework, he said, would enhance investor confidence, streamline taxation, and promote sectoral growth by creating a predictable regulatory environmentultimately strengthening Pakistan's digital economy and competitiveness. Equally important, he said, is reducing income tax for salaried IT professionals, which would help retain top talent and mitigate the ongoing brain drain. Pakistan Freelancers Association Chairman Ibrahim Amin cautioned against increasing tax rates on freelancers, who already pay taxes on every transaction in addition to fees charged by freelancing platforms and payment gateway service providers. He recommended that the government exempt freelancers and IT companies from withholding tax (WHT) on international transactions under the Exporters' Special Foreign Currency Account (ESFCA) in the upcoming finance bill, following the concurrence of the Ministry of Finance and Revenue. He also urged the finance division to ensure that all features of the Roshan Digital Account (RDA) be extended to ESFCAs for IT companies and freelancers, enabling them to benefit from streamlined banking services and improved access to capital.
Express Tribune
19-05-2025
- Business
- Express Tribune
Deadline extended for PM's youth laptop scheme
Listen to article The Prime Minister's Youth Laptop Scheme has extended its registration deadline from May 20 to June 1, giving students across Pakistan additional time to apply for free laptops under the government's flagship digital empowerment initiative. An official from the Prime Minister's Youth Programme said on Monday that the extension opens 'a new window of opportunity for students to enhance their digital literacy and academic performance.' Last month, the federal government officially relaunched the Prime Minister's Youth Laptop Scheme for 2025, aiming to distribute 100,000 laptops to high-achieving students nationwide. The application deadline was set for May 20, 2025. Breaking news! 🚨 The registration deadline for the Prime Minister's Youth Laptop Scheme (PMYLS) has been extended till June 1st, 2025. Don't miss this opportunity to apply and empower your future! Visit: #YouthEmpowerment #PMYP #DigitalPakistan — Prime Minister's Youth Programme (@PMsYouthProgram) May 17, 2025 The scheme, part of a broader push to promote smart education, aims to distribute 100,000 laptops to talented students pursuing higher education in public sector universities and institutions. According to the programme guidelines, students enrolled in PhD, MS/MPhil, Bachelor's, or Master's programmes are eligible to apply. Applicants must meet minimum academic criteria: a CGPA of 2.80 or 60% marks. First-year students are required to submit HSSC results, while MS/PhD students in their first semester must provide transcripts of their previous degree. Read More: PM laptop scheme 2025 reopens for students: How to apply A quota system has been introduced to ensure representation, with 18% of the laptops reserved for students from Balochistan and 5% for distance learners. The latter category will be split equally between students of Virtual University and Allama Iqbal Open University. 'Only currently enrolled students are eligible,' the official noted. 'Those who have already graduated are not entitled to benefit from the scheme, even if they had applied during their studies.' Students can register via the Prime Minister's Digital Youth Hub (DYH) app or the official website A 15-day window will be provided to raise objections after the provisional merit list is published, followed by the release of a final merit list. Read More: Punjab laptop scheme: Who is eligible, and how to register? The programme's implementation is being closely monitored for transparency and merit-based selection. According to officials, the scheme's website has seen a surge in traffic, with thousands of students already submitting their applications. The initiative, now in its fourth phase, is being hailed as a symbol of hope and a strategic investment in Pakistan's future. 'By bridging the digital divide and providing access to technology, we are empowering our youth to compete globally,' the official added.
Express Tribune
01-05-2025
- Business
- Express Tribune
Startup unveils AI solution for foreign trade
Listen to article A Pakistani technology company, Galaxefi, has introduced AI Faceless Operations, a fully automated, round-the-clock system designed to digitalise and streamline cross-border trade processes. The solution aims to address major inefficiencies in the trade sector, which currently suffers an estimated annual loss of $36 billion due to outdated, paper-based systems that also threaten up to 3 million jobs. Galaxefi's innovation centres on Galaxbot, a multilingual, AI-powered virtual assistant that enables users to manage trade operations through simple voice or chat commands. The assistant can automatically complete shipment details, generate customs and regulatory documents, provide real-time cargo tracking, and issue alerts in case of exceptions or delays. As per details shared by the company, the new system is designed to operate without the need for human oversight, making it ideal for around-the-clock logistics support. Complementing Galaxbot is Butler Services, a network of AI agents that perform routine logistics tasks such as customs filings, inventory checks, and customer service. These AI agents allow businesses, particularly SMEs and logistics providers, to manage peak-season demand without hiring additional staff. This "faceless" approach to resource management not only boosts efficiency but also significantly reduces operational costs. The launch of AI Faceless Operations is aligned with national initiatives like Digital Pakistan and the Pakistan Single Window (PSW), both of which aim to modernise the country's trade infrastructure. According to Galaxefi, the system can accelerate processing times by up to 70%, cut down on overhead, and enable hands-free, 24/7 trade facilitation. "As Pakistan moves toward digital trade, we need a hands-free solution that never sleeps," said Asif Pervez, Founder and CEO of Galaxefi. "Our AI Faceless Operations let companies focus on growth, not paperwork." Asif emphasised that the system is built to empower Pakistani exporters, solo entrepreneurs, and service providers with global-level capabilities, reducing reliance on manual processes and enabling seamless integration into modern supply chains. "This is just the beginning," he added. "In-Shaa-Allah, there's more to come."
Business Recorder
01-05-2025
- General
- Business Recorder
Future of learning
Digital transformation in education offers numerous advantages, including increased accessibility, particularly in remote areas, and the potential to address disparities in educational quality. It promotes the use of online learning platforms and digital resources, aligning with the preferences of digital-native learners. In the educational context, digital transformation entails a fundamental reconfiguration of teaching and learning processes to address the needs of digital-native learners. This transformation encompasses both the practical dimensions—such as the acquisition of digital knowledge and technical skills—and the broader cultural shift towards 'being digital,' which involves cultivating appropriate competencies, mindsets, and attitudes toward digital engagement. The digital transformation of education necessitates a comprehensive focus on both teacher professional development and the structural reorganization of educational institutions. As the primary agents in student learning, teachers must be adequately prepared to adopt and implement innovative pedagogical methodologies suited to the needs of digitally native learners in an increasingly digitalized environment. This shift should support learners in establishing individualized learning trajectories, facilitated through the effective integration of technological tools. Pakistan is currently experiencing a significant transformation in its educational landscape, characterized by the rapid expansion of online learning. The conventional education system — centred on physical classrooms and printed textbooks — has long faced numerous challenges, including limited access to education in remote regions, pronounced disparities in educational quality between urban and rural areas, and inadequate resources for effective instruction. In response to these persistent issues, the country has witnessed a growing shift towards digital education. The increasing adoption of online learning platforms and initiatives represents a promising and potentially transformative approach to addressing these systemic challenges. It's time to develop/design digital educational technologies, and that digital technologies will be leveraged as a common good to support the achievement of SDG 4 – Education 2030 and to build shared futures of education beyond 2030. According to the Statists, 2025, by February 2025, there were 5.56 billion internet users worldwide, accounting for 67.9 percent of the global population. Of this total, 5.24 billion individuals, or 63.9 percent of the global population, were active social media users. Among these users, students represent a significant demographic that increasingly utilizes these platforms to stay informed about the latest developments and to establish social connections. The population of Pakistan stood at 253 million in January 2025, out of total 36.38 percent of population lived in urban, whereas 62.62 percent lived in rural areas. According to Digital Pakistan, by January 2025, there were 190 million active cellular mobile users, this figure equivalent to 75.2 percent of the total population. There were 116 million individuals using the internet at the start of 2025, and the internet penetration rate stood at 45.7 percent. LinkedIn is a business and employment-oriented social network indicates 15.0 million members in early 2025 and X had 1.99 million users for the same period. According to Digital Pakistan, by January 2025, there were 66.9 million social media user identities, equating to 26.4 percent of the total population while 137 million people in Pakistan did not use the internet means 54.3 percent of the population remained 'offline'. According to PSLM (2019-20), at national level, 32 percent of children (age 5-16 year) are out of school. According to World Bank-2022, 77 percent of children in Pakistan have 'learning poverty' at late primary age are not proficient in reading, adjusted for the out-of-school children. The provision of internet facilities, and time flexibility that online education allows, will give working children time to educate themselves. Proper formation and implementation of any programmes would even educate adults — the dream of 100 per cent literacy could come true. In May 2023, Pakistan's Ministry of Federal Education and Professional Training's approved National Distance Education Strategy (NDES) unanimously across Pakistan's provinces. Early childhood education is fundamental in shaping a child's learning capabilities. The government should prioritise the expansion of access to pre-primary education, ensuring that children develop literacy skills prior to their entry into primary school. Sustainable development is inherently multidimensional, encompassing social, environmental, and economic spheres. PIDE explained that access to the internet should be treated as a fundamental right. In this context, the integration of digital transformation within education is imperative and must be guided by several key drivers. These include the effective utilization of technology, particularly in online and hybrid learning modalities, which align with the high levels of digital engagement and preference for autonomous learning among digital-native students. Moreover, the implementation of innovative pedagogical approaches—such as experiential and problem-based learning—should be prioritised to foster the acquisition and practical application of knowledge and skills in addressing real-world challenges. The development of both soft skills (e.g., communication, collaboration, and adaptability) and hard skills (e.g., technological proficiency and analytical thinking) is essential to prepare learners as active, informed citizens and capable professionals. Social media exerts both beneficial and detrimental influences. On the positive side, it facilitates enhanced communication, promotes information dissemination, expands educational opportunities, and fosters networking. However, it is also associated with adverse effects such as addiction, cyberbullying, decreased attention span, and the spread of misinformation. Therefore, it is imperative that students engage with social media in a responsible and balanced manner to mitigate its negative consequences while maximizing its advantages. Additionally, the active involvement of parents and educators is essential in guiding students toward the responsible and informed use of social media platforms. From the perspectives of educators, the question being raised -whether educators can play the role of friend, philosopher, and guide effectively through the online learning platform? No longer gauge how your audience is responding, and nor can you use your body language or gestures to hook their attention. Face-to-face engagement fosters dynamic discussions, collaborative projects, and interpersonal connections that contribute to a holistic educational experience. To achieve the target of trillion-dollar economy by 2035, there is a pressing need to develop and implement comprehensive regulatory frameworks to ensure the quality and accreditation of online courses, thereby promoting transparency and accountability within the digital education sector. The establishment of rigorous quality assurance mechanisms and standardized accreditation criteria is essential for maintaining educational standards and protecting the interests of learners. Moreover, the effective integration of online learning is contingent upon the ability of educators and academic institutions to adapt to digital pedagogical approaches. To support this transition, it is imperative that policymakers prioritise investments in digital infrastructure, with a focus on enhancing internet connectivity and broadening access to technological resources nationwide. The use of e-learning platforms, digital classrooms and mobile-based learning applications can effectively bridge the educational divide, particularly in remote areas. It is essential to promote public-private partnerships to expand digital literacy initiatives. Emphasizing early childhood education and promoting responsible technology use are also crucial for successful digital transformation. Education policies should be coherent, transparent, and well-funded. Strengthening governance mechanisms, mitigating corruption and increasing education budgets will contribute to the establishment of a more efficient digital educational system. Copyright Business Recorder, 2025
