Pakistan’s information technology sector has the potential to grow exports, since the industry increased by roughly 40% in the fiscal year 2020-21.
Finance Minister Shaukat Tarin set great hopes on the rise of IT sector exports, which he believes might reach 100% or more in the next years, when delivering the Economic Survey for FY21.
The minister questioned why Pakistan could not boost its IT exports to $40 billion, if not $100 billion, after India’s IT exports increased to $100 billion in 2010 from $1 billion in 2000.
According to the Economic Survey, IT and IT-enabled services (ITeS) remittances have grown rapidly over the last five years, with a compound annual growth rate (CAGR) of 18.85 percent, the highest among all industries and the most in the area.
Micro businesses, freelancers, and independent consultants have contributed roughly $500 million to IT and ITeS exports, with yearly domestic income exceeding $1 billion.
As statistics show, the IT sector has grown steadily during the pandemic; however, to maintain this growth, a supportive policy – developed in consultation with industry experts and relevant authorities – is required to further streamline the process, according to SI Global ICT CEO Noman Ahmed Said in an interview with The Express Tribune.
“It is critical that unfavourable rules that impede progress be amended so that businesses can continue to operate within Pakistani borders and contribute to the growth of our country,” he said.
According to the survey study, IT export remittances, which include telecommunication, computer, and information services, increased by 41.39 percent to $1.29 billion from $918 million in the previous fiscal year’s July-February period, compared to $918 million in FY20.
ITeS export remittances, which include computer and call centre services, increased by 41.65% to $1.113 billion in the first eight months of the current fiscal year. During the same period last year, export remittances totaled $785.68 million.
The number of IT and ITeS companies registered with the Pakistan Software Export Board (PSEB) increased by 21% to 3,013, as of March 30, 2021. The overall number of firms registered was 2,484 last year.
The telecom sector received $101.1 million in foreign direct investment (FDI) from July to February of FY21.
The number of IT and ITeS companies registered with the Pakistan Software Export Board (PSEB) increased by 21% to 3,013, as of March 30, 2021. The overall number of firms registered was 2,484 last year.
The telecom sector received $101.1 million in foreign direct investment (FDI) from July to February of FY21.
During the period July-February FY21, telecom operators invested a total of $363.9 million, owing to strong investment in the cellular mobile sector, which totaled $253.5 million.
In total, $465 million was invested in the telecom sector in the first two quarters of FY21.
Pakistan’s cellular mobile subscribers (the number of active SIMs) increased by 8.6% in nine months to 182 million at the end of March 2021, up from 167.3 million at the end of June 2020.
Telecom operators invested a total of $363.9 million from July to February FY21, owing to robust investment in the cellular mobile sector, which reached $253.5 million.
In the first two quarters of FY21, $465 million was invested in the telecom sector.
Pakistan’s cellular mobile customers (active SIMs) increased by 8.6% in nine months, to 182 million at the end of March 2021, up from 167.3 million at the end of June 2020.
He elaborated that FDI in the cellular mobile sector could have reached $1 billion, instead of $253.5 million, by selling part of the hoarded spectrum.
“We should collectively focus on getting our basics right; for example, system engineering is often misconstrued as project management,” Said suggested.
Moreover, “we should locally source products and skills to further enhance growth,” he added.
Said emphasised, “It is now time to restructure the sector as we maximise our revenues and continue to move towards a technologically advanced Pakistan.”
Source: tribune
