Pakistan’s IT and IT-enabled services (ITeS) sector is experiencing a boom, with export remittances witnessing a significant increase in the first eight months of the current fiscal year (2023-24).
According to official data, ITeS exports, which include computer services and call center operations, grew by a substantial 17.37% compared to the same period last year. This translates to a total value of $2.283 billion, a significant jump from the $1.945 billion recorded during the same period in FY 2022-23.
March 2024 marked a high point for the sector, with ITeS export remittances reaching a record-breaking $306 million. This represents a 4% increase from the previous month and a substantial 36% year-on-year growth compared to March 2023’s $225 million.
However, the broader ICT (Information and Communication Technology) sector, which encompasses telecommunication, computer, and information services, experienced a slight decline in FY 2023. Export remittances for ICT stood at $2.597 billion, reflecting a decrease of approximately 1% compared to the $2.619 billion recorded in FY 2022-23.
Despite this slowdown in the broader ICT sector, the IT and ITeS segment’s strong performance suggests significant potential for growth. The Ministry of Information Technology and Telecommunications acknowledges this potential, estimating the sector’s export potential to be as high as $15 billion.
However, they have also identified challenges such as policy inconsistencies, tax issues, and banking hurdles that are hindering further development. Addressing these constraints will be crucial to unlocking the full potential of Pakistan’s IT and ITeS industry.
