Now Reading: Pakistani IT Exports Cross $1 Billion By Taking Indian Clients
In the current financial year, Pakistan’s IT exports maintained an enormous momentum, crossing the $1 billion mark in just seven months of the 2020-21 financial year. As per data released by the State Bank of Pakistan, IT and IT-enabled remittances increased from July 2020 to January 2021 to $1,119 billion, compared to $812 million in the corresponding period of the last financial year, showing a handsome 37 percent year-on-year growth.
For the first time in the history of the country, industry players forecast that exports could reach a mark of $2 billion if the pace of service exports continues in the same way in the coming months. This growth in IT exports was driven by increasing automation, and by making use of new ways of doing business that emerged following the outbreak of COVID-19 worldwide, after which services were digitalized in different countries.
Different foreign companies, mainly from the US and EU markets, prefer to place their orders in Pakistan rather than in India and the Philippines for the very reasons. Barkan Saeed, President of the Pakistan Software Houses Association ([email protected]) for IT and ITeS, stated on the occasion;
“The growth in IT exports value was driven by the foreign clients moved from Indian companies to Pakistani companies in a post-COVID-19 scenario.”
In the next two years, the government could potentially double exports from $2 billion annually to $4 billion annually, with a concrete roadmap for the IT sector, the sector which could not only obtain foreign exchange for the country, but is also a key sector that could provide millions of young people with skilled jobs, Saeed further added.
He then went on to say that local IT companies and the government should work on a strategy to protect the IT sector’s growth on a sustainable basis for the future. Saeed called for declaring IT a strategic sector with the same focus and treatment. He suggested that to unleash the true potential of the IT sector, the PM should resolve the pending problems of the industry immediately.
Recently, in order to promote the export-oriented business of IT companies in Pakistan, the current government has taken various initiatives related to ease of doing business. In the pipeline, however, there are major initiatives that need to be accomplished soon.
[email protected] Chief noted that the IT industry’s recent challenges, including FIA raids on software houses and FBR notifications to IT companies despite exemptions, saying that these obstacles will restrict IT players from exploring their potential in true letter and spirit. To promote the IT industry, the government through the Ministry of IT should address these issues promptly, he further said.