Pakistan’s IT exports are expected to fall short of the $5 billion target set for the financial year 2023, reaching only $2.58 billion, according to a brokerage report. The struggling business confidence and exchange rate volatility have contributed to IT players retaining a larger portion of their proceeds outside the country.
The recorded IT exports in May 2023 amounted to $236 million, a 23% increase compared to the previous month. Telecom and computer services saw significant growth, with a 92% and 11% month-on-month increase, respectively.
However, the overall IT exports have marginally declined by 1% in the 11 months of FY23 compared to the previous year. The report highlights the impact of clearing days on the realization of proceeds and attributes the YoY increase to the low base effect and interbank rates.
Despite the challenges, IT exports remain a significant contributor to Pakistan’s economy, accounting for 24% of total exports in May 2023. The report emphasizes the need to address economic challenges, including inflation, rupee devaluation, political instability, and import restrictions, to foster sustainable growth in the IT sector.