According to first-ever IT export strategy research of Pakistan, the country may increase its IT/ITeS export earnings to $15 billion annually in the next 5 to 6 years.
Potential of Pakistan To Become an IT Hub
As per the assessment, Pakistan has the potential to become a worldwide IT hub by increasing its yearly export income from $12 billion to $18 billion during the next five to six years.
The Pakistan Software Export Board (PSEB) worked with PricewaterhouseCoopers (PwC) and other foreign partners, including University of Oxford professors, to create the IT export strategy report.
Additionally, Pakistan has 1 million independent contractors, 316,000 IT workers, 226,000 students enrolled in IT programs in universities, and 12,000 IT companies that have the potential to become an IT hub within the next five to six years, according to the report.
This export goal can be met by concentrating on the top five IT/ITeS market categories and the twelve sub-segments that fall inside them.
These segments have the following characteristics: substantial global market size, rapid growth, and a dearth of well-established competitors.
IT Exports
At now, the USA, UAE, UK, Singapore, Canada, and Norway are the countries to which Pakistan exports IT.
In 2020–21, IT exports to the United States totaled $1,066 million.
In 2020–21, the United Arab Emirates received $126 million in IT exports, the United Kingdom received $104 million, Singapore received $51 million, Canada received $39 million, and Norway received $36 million.
According to the survey, Pakistan’s IT industry is expanding quickly and ranked first out of 12 service sectors in terms of exports in 2021/22.
IT Industry Sales
75% of the sales in the IT industry come from the Software Development and IT Services categories.
However, the report lists Software Development, ITES, ITSS, E-Services, and Smart Tech as the top five IT market segments.
AI, Blockchain, ERP/CRM Integrations and Revenue Implementation, Cloud computing, LPO AR, VR & MR, E-Healthcare, Digital Twin, Cyber security BPO, E-learning, and E-Education are the 15 key subsegments that have been highlighted by the plan.
If the country’s macroenvironment not improved, export market growth will become less than ideal.
The research made recommendations for large-scale actions to help the nation’s IT exports.
It includes subsidized loans for establishing up PVT equity funds and BPOs, as well as credit availability based on client contracts and receivables.
Another suggested macro intervention is the free movement of foreign currency earnings by freelancers and IT firms.
Foreign and Domestic Investments in IT Industry
However, to encourage foreign and domestic companies to invest in Pakistan’s IT sector, tax laws and harmonization are needed.
Increased ownership and funding, especially from foreign sources, for the IT/ITeS sector.
Enhancements to the policy, regulation, and legal framework.
The report makes strategic recommendations for boosting IT exports, such as providing up to a million people with technical and managerial training.
Proper Education For IT
In addition, higher education is needed to support the industry’s goals for revenue from IT and ITeS as well as to improve the caliber and scope of the supporting infrastructure, which includes technology parks, cloud services, and dependable high-speed internet connectivity.
To read our blog on “IT exports of Pakistan increase by 7% on YoY basis in July,” click here.
