May 31: 2008 - In present era of technological advancement, the prosperity and growth of countries depend heavily on Information & Communication Technology (ICT) sector, as ICT sector is connected deeply behind the growth of other sectors of the country, as it enhances their productivity and efficiency further a great deal. For ICT sector to flourish, was very critical for a developing country like Pakistan, but unfortunately the sector was hit badly through implementation of 15% GST on imported and local parts of computer hardware in the federal budget for fiscal year 2006-07, as it had a devastating affect on both the software and hardware industries as the prices of PCs increased by 20 to 30%, while the end users of computers suffered the worst.

As the vision of Ko-ordination Group – KRG, A Social Welfare Project of Kalia Group (KG), is “Information Technology (IT) is the language of 21st century and without learning it, no progress and prosperity is now possible” so after the implementation of 15% GST on ICT industry, which was in its infant age, KRG was the first entity that raised its immediate concern over the decision and protested against the decision, demanding its immediate withdrawal and for this KRG not only communicated with government officials in this regard but also protested on every platform including Karachi Press Club and others and in this regard sent letters to numerous concern institution of IT, including IT Ministry recently, demanding the withdrawal of 15% GST.

Finally the efforts of KRG and other IT associations reaped fruits as on May 28, Federal Board of Revenue (FBR) issued a notification to give Sales Tax exemption on the import and supply of machinery and equipment by financial services providers, that include commercial banks, microfinance banks, Islamic banks, non-government organization, rural support programmes and leasing companies, authorized by the State Bank of Pakistan (SBP) under the Improving Access to Financial Services Programme (IAFSP).

The above decision would ensure that ICT industry is granted the wings to launch the journey of taking Pakistan in the list of developed and booming countries of the world which is only possible through empowering nation with Information & Communication Technology education, training and awareness because now even a common person will have a major role to perform in the race of country’s progress and the concept of KRG is also to create an IT cultural in Pakistan hence, in addition to this the step would also discourage the illegal import of PCs, which took a rise after the decision of 15% GST on computer accessories and ensure that Pakistan, through utilizing ICT as an important engine of growth and development at both micro and macro levels, can compete with other developing nations effectively in the future days to come.