Pakistan announces Rs 15 billion IT budget

ISLAMABAD: Pakistan's Finance Minister Shaukat Aziz on Saturday announced a big increase in funding for the development of information technology, allocating Rs 15 billion ($288 million) to the sector.

Aziz, unveiling the budget for the fiscal year 2000/01 that starts in July, said a substantial amount of the Rs 15 billion would be spent on development of human resources. "The development of information technology is a key priority of the government...In July an action plan will be announced," he said.

Pakistan is spending only Rs 110 million on science and technology at present and sorely lags arch-rival India, where the sector is powering ahead creating jobs and wealth.

Science and Technology Minister Ataur Rehman has said he wants to end the neglect and make information technology the backbone of Pakistan's economic growth. Aziz said the government was withdrawing a 0.5 per cent tax on software imports and allowing software export companies to retain 25 per cent of their export earnings in foreign exchange.

He also announced an end to custom duty on computers and hardware parts. "This will usher in a dotcom revolution in Pakistan," he said.

$1.0= 52 Pakistan rupees

(C) Reuters Limited 2000.