Amir Khan

Pakistani IT companies have significantly broadened their presence in the Gulf countries, especially in Saudi Arabia. This strategic expansion has unlocked new revenue streams and diversified export destinations, contributing to the sector's vigorous growth. Talking to WealthPK, Additional Secretary of Information Technology and Telecommunication Ms. Aisha Humera Chaudhry highlighted that the relative stability of the Pakistani rupee had fostered a constructive environment for IT exports, improving the competitive pricing of Pakistani services in the global market. “Additionally, the State Bank of Pakistan's move to raise the holding limit in Exporters’ Specialised Foreign Currency Accounts from 35% to 50% has provided the exporters with greater flexibility and motivation to repatriate the foreign exchange,” she added. The surge in IT exports highlights the ICT sector’s potential to contribute significantly to Pakistan's economic growth.

In the first 10 months of the Fiscal Year 2024, the IT exports reached $2.59 billion, a 21% increase from $2.14 billion recorded in the same period of the previous fiscal year. This growth trajectory suggests that the IT sector is becoming a vital pillar of the national economy. In addition, the IT export remittances soared to a record $310 million in April 2024, marking a substantial 62.3% year-on-year increase from $191 million in April 2023. This achievement not only highlights the exponential growth in Pakistan’s Information and Communication Technology (ICT) sector but also reflects broader economic implications for the country. Talking to WealthPK, Joint Secretary of Information Technology and Telecommunication Muhammad Adnan Nazir emphasized that enhancement in the retention facility was a crucial step geared towards bolstering export performance.

While achieving the precise target might be uncertain, it's evident that the policy has positively influenced export statistics, he said. He added that the future growth of Pakistan's IT industry was contingent upon a number of factors. More market growth is required. Although the Gulf markets have been substantial, further expansion into other international markets may present new opportunities for growth. “Furthermore, consistent policy backing is essential. For the current growth momentum to be sustained and accelerated, help from the government and regulatory agencies is still required,” he pointed out. He concluded with remarks that Pakistan's ICT sector was well-positioned to promote the national economic growth, foster innovation and create high-value jobs in the process.

Credit: INP-WealthPk