Prime Minister Shehbaz Sharif on Friday expressed his government’s determination to achieve the target of $25 billion in IT exports during the next three years.
The prime minister, chairing a meeting to review ongoing IT projects, digitisation efforts, and initiatives to boost IT exports, expressed satisfaction with the progress on the IT Park project in Islamabad.
He instructed officials to consult with Korean experts to explore ways to reduce the project’s completion timeline, said a statement issued by the PM Office’s media wing.
Pakistan’s IT exports has soared by 42% in just September 2024, hitting $292 million compared to the same period last year and exceeding the 12-month average of $280 million. This spots the 12th consecutive month of year-on-year growth in IT exports since October 2023.
As per the State Bank of Pakistan (SBP), IT exports increased 34 percent in the ist quarter {July-September} of the current fiscal year, amounting to $877 million. This growth is attributed to expanding the global client base, particularly in the Gulf Cooperation Council (GCC) region, and favorable policies for instance increasing the permissible retention limit from 30 percent to 50 percent in Exporters’ Specialized Foreign Currency Accounts. Additionally, the stability of the Pakistani rupee motivated exporters to repatriate more of their earnings to Pakistan.
The Pakistan Software Houses Association (P@SHA) claimed that 62 percent of IT companies hold specialized foreign currency accounts. These organizations have been active in global engagements, participating in international events like London Tech Week 2024, Collision Canada 2024, and Black Hat, USA.
Read more: Pakistan records highest-ever monthly IT exports of $310 million in April
An important development in FY 2024-25 is the SBP’s introduction of the Equity Investment Abroad category, allowing export-oriented IT firms to invest in overseas entities using up to 50% of the proceeds from their specialized accounts. This move is expected to increase confidence among IT exporters, encouraging them to bring their earnings back to Pakistan.
Dr. Noman Ahmad Said, an IT exporter, highlighted the significant achievement of this growth despite challenges like slow internet speeds. He projected monthly IT exports to rise to $300-350 million in the upcoming months, reflecting the joint efforts of the government and IT companies. Said added that firms are optimistic about growing their businesses through collaborations with both local and international partners in traditional and emerging markets.
Net IT exports for September 2024 stood at $255 million, reflecting a 56% year-on-year increase and surpassing the 12-month average of $245 million. Another IT exporter, Saad Shah, urged companies to explore established and emerging markets in the GCC and ASEAN regions to diversify their client base beyond North America. He advised companies to strengthen their market presence and broaden their service offerings, including financial services, enterprise solutions, automation, and AI, through joint ventures and collaborations.
Forecasts indicate that the IT sector will likely maintain its growth trajectory, with an expected increase of 10-15% in FY 2024-25, reaching $3.5-3.7 billion in total exports. Minister of State for Information Technology and Telecommunication Shaza Fatima Khawaja credited the rise in exports to initiatives aimed at easing business operations and announced further efforts to boost IT exports.