Image Pakistan forming tech subsidiary for tax incentives

KARACHI: Image Pakistan Limited, formerly Tri-Star Polyester Limited, plans to create a wholly-owned subsidiary, “Image Tech Limited, to avail of the recently announced incentives by the government for technology companies, including digital electronics and Internet-related services such as e-commerce services, a bourse filing said.

Such companies have been allowed a 100 percent tax credit against their tax liability for three years. Image Pakistan would make Rs200 million capital investment in the subsidiary company, it added.

Moreover, Image Pakistan has become the country’s first approved seller on Amazon. The company was initially set up for producing 4,200 tonnes/annum of polyester filament yarn. Lately, it has started manufacturing and marketing value-added embroidered fabric and printed lawn under the brand name “Image”.

In May this year, the US-based e-commerce giant Amazon added Pakistan to its approved sellers’ list, which is seen as a major boost to its e-commerce industry.

Amazon’s sellers’ list will create opportunities for the exporters to sell their products through its platform, giving them access to market their products through the 3P model, which brands the owners with a third-party relationship to retail sell directly to buyers through the marketplace. Amazon also offers the 1P model for mass producers, who want to produce brand items for Amazon.

Pakistan remained off Amazon’s list of sellers, despite the company’s presence in neighboring India. Pakistani retailers wishing to sell their products on the marketplace would register their companies from other countries, to bypass Pakistan.

However, after being added to the list, Pakistani merchants will be able to sell their products on the platform with ease. But this does not mean much for the Pakistani consumers; it will mostly benefit Pakistan-based merchants that want to sell their products abroad.