According to the latest data released by the State Bank of Pakistan, information and communications technology (ICT) exports maintained a solid growth of inflows, which amounted at $1.69 billion from July to February in the current financial year 2021-22, a 30 percent year-on-year gain.
In terms of economic contribution, ICT has risen to the top of the services industry. The overall exports of the services sector increased by 18 percent year on year to $4.49 billion, owing to greater inflows in this sector.
ICT exports have been steadily increasing since the Covid-19 outbreak, as Pakistani enterprises and freelancers capitalize on the increased global demand for tech-related services as a result of remote working and e-learning arrangements. During the period, ICT exports increased in practically all areas, including software consultancy, call centers, and telecom services.
The government and the State Bank of Pakistan (SBP) are working hard to encourage this fast growing services sector, including expediting the receipt of export revenues and providing tax breaks and incentives.
According to Veqar-ul-Islam, a member of the Prime Minister’s Task Force on Information Technology, the current government has been working hard to boost the IT sector through its Digital Pakistan program.
He believes that eliminating taxes on IT services will not only boost freelancing, but will also encourage competent workers to take a chance on entrepreneurship and expand their firms on a local and worldwide scale.
He pointed out that the contribution of IT firms and freelancers to the national economy had risen to an all-time high.
He stated that the government had set an ambitious goal of $50 billion in IT exports, which might be met in the next few years provided incentives such as tax breaks and the industry’s local potential were fully realized.
To read our blog on “Pakistan IT Exports Reaches $420 Million in July-Aug 2021,” click here.
