IT sector seeks SIFC support to unlock potential

Technology professionals in Pakistan have urged the Special Investment Facilitation Council (SIFC) to provide robust strategic support to overcome barriers that hinder the Information Technology sector's growth, which is key to expanding the national economy. They highlighted the need for significant governmental support to address core issues impacting Pakistan's competitiveness in the global tech landscape.

IT and Telecom Sector Analyst Muhammad Yasir stressed that the government must prioritise resolving internet connectivity issues and undertake efforts to rebuild the image of Pakistan's IT sector. He noted that disruptions in internet service have led to lost business opportunities and diminished trust among international clients. Yasir suggested that actively promoting Pakistani IT companies through participation in global tech events and embassy-hosted roadshows in key export markets could help restore the sector's reputation and encourage foreign interest.

Additionally, he recommended that the government incentivise IT companies to increase marketing activities and enhance export revenues by offering cash rewards to exporters. He also called on the Ministry of IT and Telecommunication (MoITT) and the SIFC to advance critical initiatives, such as establishing Special Technology Zones, launching PayPal or similar services, and setting up e-working centres to facilitate freelancers and companies alike.

Yasir further advocated for the government to fast-track the digitisation of public sector entities, ensuring that local tech companies are given priority over foreign firms to modernise and upgrade these systems.

Farazur Rehman, the Founder Chairman of the Pakistan Business Group (PBGO) and former President of the Korangi Association of Trade and Industry (KATI), echoed Yasir's concerns in a formal letter to the SIFC. "Critical challenges are hindering the growth of Pakistani IT professionals and entrepreneurs as they seek to expand their businesses globally. Addressing these barriers could unlock substantial growth within Pakistan's IT sector and significantly boost the national economy," he said.

He highlighted that Pakistan's IT sector, while holding immense potential, however, several obstacles restrict their competitiveness on the global stage. These include the lack of major payment processors such as PayPal, high shipping costs, extended delivery times, limited access to global marketplaces, trust issues, high operational costs, and the currency volatility that deters tech entrepreneurs from expanding globally.

"We urge the SIFC to take the lead in finding and implementing solutions to these pressing issues, which would enable Pakistani businesses to compete more effectively on the world stage," Rehman stated.

Earlier this year, at GITEX Global 2024, Pakistan was recognised as the "Tech Destination of the Year," a notable achievement celebrated by both government and private sector representatives. Many analysts, however, stressed that this accolade should translate into actionable steps to resolve ongoing challenges, attract export revenue, and encourage foreign direct investment into Pakistan's IT industry. In order to do this, they sought a clear call to action for the government: by removing barriers and reinforcing infrastructure and support systems, addressing critical issues like internet disruptions, Pakistan's IT sector can achieve substantial growth and contribute significantly to the national economy.