IT exports dip 12.4% to $265m

Year-on-year exports see increase of 39.47% from $190m in January 2023

LAHORE:

The latest data from the State Bank of Pakistan has revealed a 12.54% decline in Telecommunications, Computer, and Information Technology exports for January 2024 compared to the previous month. The figures, released on Monday, indicate a decrease from $303 million in December 2023 to $265 million in January 2024.

However, on a year-on-year basis, there has been a notable increase of 39.47% in exports, with January 2023 recording exports worth $190 million. Despite this yearly growth, the month-on-month decrease points to challenges within the sector.

Overall service exports also saw a decline on a month-on-month basis, dropping by 7.25% to $678 million in January 2024 from $731 million in December 2023. Similarly, on a year-on-year basis, there was a 1.45% decrease in exports.

For the first seven months of the fiscal year 2023-24, the overall services export numbers stand at $678 million, reflecting a decline of 2.41% compared to the same period in the previous fiscal year.

Experts in the IT sector had been warning of a potential slowdown in exports due to various infrastructural issues faced by software houses and freelancers in Pakistan. These issues have positioned Pakistani IT companies and individuals at a disadvantage compared to their regional counterparts.

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According to industry experts, the reported figures include telecommunications and computer exports alongside IT exports, with call centres contributing significantly. However, concerns remain regarding the true representation of the IT sector’s performance in these numbers.

Many IT companies are reportedly considering shifting part of their operations to other countries, such as the UAE, due to infrastructural, political, and economic challenges in Pakistan.

The freelancing community, a significant contributor to IT exports, is also facing challenges, including internet suspensions and regulatory hurdles. Addressing these challenges is crucial to maintaining Pakistan’s position as an attractive outsourcing destination in the global market.

Despite being a cost-effective market, negative perceptions about Pakistan may impact future outsourcing decisions, underscoring the urgent need to address issues within the IT sector.

Published in The Express Tribune, February 20^th, 2024.

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