Arooj Zulfiqar

Amid a global digital transformation, Pakistan's Information Technology (IT) sector is increasingly becoming a driver of economic growth and innovation. The recent significant increase in exports highlights a compelling story of untapped potential and promising opportunities, reports WealthPK.

“The increase in IT exports from Pakistan demonstrates the sector's ability to bounce back and adjust. It will be essential to maintain this growth and continue to develop the country's digital economy by providing ongoing government assistance and making strategic investments in technology infrastructure,” stated Asfand Yar Khan, Director General (IT) at the Ministry of Information Technology and Telecommunication. “Government policies have played a pivotal role in this growth trajectory," he said. "Tax breaks and reduced regulatory hurdles have created a conducive environment for both local startups and international tech giants to invest in Pakistan.” He added, “The government’s focus on improving digital infrastructure has also been crucial. Some of the notable initiatives include creating specialised courts to handle IT-related legal disputes, allowing PayPal to operate in the country for easier international money transfers, and facilitating the growth of IT services and remote work capabilities.”

Additionally, he said the establishment of Special Technology Zones (STZs) has provided a hub for tech companies to innovate and collaborate. “The booming IT sector is not only boosting exports but also creating significant employment opportunities. With the expansion of the IT sector, we are seeing a ripple effect across the economy," said Syed Junaid Imam, Member IT at MoITT. “Increased employment opportunities are leading to higher disposable incomes, which in turn fuel consumption and economic growth." He said, “Pakistan's current freelance market within the IT sector only consists of more than a million individuals working in various specialised fields that are well integrated into the global gig economy. The main sources for getting work are websites like Upwork, Fiverr, and PeoplePerHour, which offer projects and opportunities for freelancers to work on.”

Despite the positive momentum, experts have cautioned that sustaining this growth will require continuous efforts to address existing challenges. Cybersecurity, data protection, and the need for advanced technical skills demand ongoing attention. While the current policies have set a strong foundation, we must continue to invest in cybersecurity and skill development to maintain our competitive edge in the global market. Looking ahead, the future of Pakistan's IT sector appears promising. The government’s Vision 2025 aims to further enhance the sector by focusing on innovation, entrepreneurship, and international partnerships. This vision seeks to position Pakistan as a leading player in the global digital economy. In April 2024, ICT services export remittances surged to $310 million, an astounding increase of 62.3% from $191 million in April 2023.

Credit: INP-WealthPk