PSEB, PSX ink MoU to promote IT companies

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ISLAMABAD, Feb 25 (APP):In yet another major step towards ensuring sustainable growth of Pakistan’s IT Industry, Pakistan Software Export Board (PSEB) of Ministry of IT & Telecom on Thurday signed a Memorandum of Understanding with Pakistan Stock Exchange (PSX).

Managing Director, PSEB Osman Nasir, and  Chief Executive Officer & Managing Director, PSX Farrukh H. Khan,  signed the MoU. Minister for IT and Telecommunication Syed Amin-ul-Haque also witnessed the cermeny , said a news release.

On the occasion, Syed Amin Ul-Haque , said that the MoU was  a giant leap forward for development of Pakistan’s IT Industry.  The goal was to increase the number of listed technology companies on PSX Main Board and  GEM Board which would in turn help to strengthen financial ecosystem for IT sector growth and contribute to efforts for building a strong brand image of Pakistan’s  IT industry in the international markets, he added.

The minister said, “Due credit goes to Security and Exchange Commission of Pakistan  for reducing corporate governance rules from 21 to 3 and for making it easier for technology firms to register on PSX” he added.

Amin  said that small to medium enterprises make up a big chunk of business enterprises in the country. SMEs constitute nearly 90% of all enterprises in Pakistan. They contribute about 40% to the annual GDP and employ about 80% of the non-agricultural labor force. The growth enterprises play a major role in a country’s economy. They provide a large number of jobs and contribute significantly to the GDP of a country.

The minister that the IT &IT-enabled Services (ITeS) export remittances comprising of computer services and call center services have surged to US$1.230 billion at a growth rate of 23.71% in the FY 2019-20 in comparison to US$994.848 million during the same period despite the current global economic challenges thereby demonstrating the resilience of Pakistan’s ITsector.

“It is being fueled, in no small part, by smaller IT companies and freelancers. Naturally, they need funding to move up the ladder and this is precisely one of the bottlenecks that are holding the growth of Pakistan’s IT industry from climbing even higher”, said Haque.

The minister said that without proper projection in today’s competitive world, it is difficult to attract the attention of investors and makes it difficult for our commercial entities to attract business and enter collaboration and cooperation deals.

Managing Director PSEB Osman Nasir said, “We would work with PSX to conduct seminars, workshops and events to create awareness of the benefits of listing for IT/ITeS companies and work with PSX authorized financial advisors, consultants  and lead managers to assist the selected IT/ITeS companies for listing.”

He said that PSEB is aiming to have 40 technology companies registered on Pakistan Stock Exchange and would extend significant financial and technical assistance to the tech companies to get listed on Pakistan Stock Exchange.

Managing Director, PSX Farrukh Khan, said,  “PSX’s Growth Enterprise Market (GEM) Board facilitates small and medium sized enterprises, greenfield projects and tech startups to get listed on the Stock Exchange and raise capital. The listing regulations for the GEM Board have been made flexiblevis the Main Board while listing costs are significantly lower. Furthermore, there is an expanded list of Advisors to choose from, which adds to the convenience of issuers.”

Khan said, “The GEM Board of PSX provides an ideal opportunity for small to medium sized growth enterprises such as IT firms and tech start-ups to raise capital and expand their business horizon.