Arooj Zulfiqar

The IT sector's export remittances saw an unprecedented rise to $3.223 billion in the last fiscal year 2023-24 from $2.596 billion reported in FY23, reflecting a significant upsurge driven by the government's strategic initiatives and a robust policy framework, reports WealthPK.

"The remarkable growth underscores Pakistan's potential as a burgeoning hub for information technology and highlights the sector's pivotal role in the country's economic development," Asfandyar Khan, Director General (IT) at the Ministry of Information Technology and Telecommunications, said. Talking to WealthPK, he said: "The surge in IT sector export remittances can be attributed to a series of proactive policies implemented by the government to foster a conducive environment for the technology industry." "These policies include tax incentives, ease of doing business, and investment in digital infrastructure. The government's commitment to nurturing the IT sector has been further solidified by the establishment of specialised technology zones and incubation centres, providing a fertile ground for startups and tech companies to flourish," Asfandyar said.

The ICT services export remittances surged to $298 million in June 2024, an astounding increase of 32.44% from $225 million in June 2023. The ICT export remittances surged to $3.223 billion in FY24 in comparison to $2.596 billion reported in FY23. "One of the key factors contributing to the exponential growth in IT export remittances is the increased confidence of both local and foreign investors in Pakistan's IT industry. The government's efforts to streamline regulatory processes and ensure transparency have played a crucial role in attracting substantial foreign direct investment into the sector. Additionally, the collaboration with global tech giants and the signing of several bilateral agreements have opened new avenues for Pakistani IT firms to expand their footprint in the international market," Asfandyar explained. He added: "Recognising the importance of a skilled workforce in driving the IT sector, the government has strongly emphasised enhancing education and training programmes.

Initiatives such as the Digital Skills Training Programme and partnerships with leading educational institutions have been instrumental in equipping the youth with cutting-edge skills and knowledge. As a result, Pakistan now boasts a pool of highly skilled IT professionals who contribute significantly to the country's export remittances." Notwithstanding the impressive growth, the IT sector in Pakistan still faces several challenges that need to be addressed to sustain and further accelerate this momentum. Issues such as the need for improved internet connectivity in rural areas, cybersecurity threats, and the retention of skilled talent require immediate attention. The government, in collaboration with the private sector, must continue to work towards creating an enabling environment that addresses these challenges and ensures the long-term growth of the IT industry.

Credit: INP-WealthPk