IT exports expected to exceed $3b

Experts hail government incentives, policies that propelled 32% growth

KARACHI:

Leading Information Technology (IT) companies have envisioned continuing the momentum of IT and IT-enabled services exports to various countries with increased government support, including facilitation and incentives, aimed at enhancing their international market presence. This initiative is expected to boost exports to more than $3 billion by the end of the financial year 2023-24.

The IT sector’s exports surged to $1.45 billion in the first half of 2023-24, with a 32% growth witnessed in the last two months (November and December), believed to be the targeted outcomes of government policy measures.

Major achievements included the incorporation of the IT industry into the Special Investment Facilitation Council (SIFC), allowing 50% retention of dollars in forex bank accounts, and the introduction of Paypal services to freelancers and freelancing agencies.

P@SHA Chairman, Muhammad Zohaib Khan, highlighted the collaboration between the ministry and P@SHA in advocating for the industry at a national level, leading to the support of the SIFC and implementation of desired policies. He highlighted that sustaining growth in IT exports requires consistent long-term policies, instilling confidence in both foreign and local investors and exporters at the same time.

Many IT companies have shown positive performance in exports, contributing significantly to national IT exports. Last week, Caretaker Federal Minister for Information Technology and Telecommunications (MoITT) Dr Umar Saif distributed Rs825 million as cash prizes to 550 companies playing a significant role in IT and IT services exports during the “IT and ITeS Export Award” organised by the Pakistan Software Export Board (PSEB). Notable exporters include 10Pearls, Systems Limited, Contours Software, Ibex, and others.

The cash rewards will bolster confidence among leading IT exporters, encouraging increased contribution to the IT sector’s exports, including repatriating dollars from offshore markets to retain in local commercial banks, said the P@SHA chairman.

Read IT exports rise on fair policies

IT Exporter, Co-founder and Managing Director of 10Pearls, Zeeshan Aftab, stressed the need for investing in building large organisations, as large clients prefer working with established entities boasting strong human talent pools. He suggested collaborative efforts between private and government agencies to improve IT exports through comprehensive strategies encompassing joint efforts in marketing, international cooperation, and participation in global IT events to expand market reach.

Aftab encouraged IT companies to focus on innovation, research, and development to enhance learning opportunities. Additionally, he stressed the importance of improving cybersecurity measures and fostering partnerships between industry and academia to create a sustainable and competitive IT ecosystem, ultimately contributing to IT export growth.

Pakistan’s population of 250 million, with over 60% under the age of 40, presents significant potential for a service-based economy. With internet connectivity and English proficiency, the country is well-positioned to address the supply side and increase IT exports, he said.

Meanwhile, in the first half of FY24, software consultancy services exports stood at $404 million, followed by software exports at $310 million, and hardware consultancy services at $3.3 million. Exports of other computer services amounted to $454 million, according to data released by the State Bank of Pakistan (SBP).

Published in The Express Tribune, February 17^th, 2024.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.