Amir Saeed

Pakistan is strategically focusing on information technology and other sectors for growth through fiscal reforms and incentives for IT exporters.

A surge in ICT exports positions Pakistan as an attractive IT investment hub despite existing challenges. Talking to WealthPK, Awais Ahmad, Director at Tech Solutions Pro, a leading IT solutions provider, highlighted that the government is strategically focusing on sectors such as IT, agriculture, renewable energy, textiles, and pharmaceuticals to align with global sustainability trends and harness substantial growth potential.

He further highlighted that the IT sector, in particular, has emerged as a beacon of growth, recording a remarkable 28% year-on-year expansion. “This growth is supported by a young, skilled workforce that is rapidly positioning the IT sector as a cornerstone of the country’s export strategy.” “To enhance revenue collection and mitigate fiscal deficits, the government is prioritising fiscal reforms aimed at broadening the tax base, simplifying tax structures, and improving compliance through digitalisation.

Investing in education and vocational training will further empower the workforce with essential skills for emerging industries like IT and renewable energy,” Ahmad explained. In addition, Ahmad said that Pakistan had become the first country to implement a Digital Foreign Direct Investment Initiative, marking a pivotal step in its economic transformation.

Meanwhile, talking to WealthPK, Jahanzaib Shafi, Manager of International Marketing at the Pakistan Software Export Board (PSEB), said that the government has introduced enhanced support for IT and IT-enabled services (ITeS) exporters. “This includes allowing IT companies and freelancers to retain up to $5,000 per month or 50% of their export proceeds in their Foreign Currency Accounts (FCAs) without any minimum balance requirement.”

“Such measures enable exporters to make payments abroad without prior approval from the State Bank of Pakistan, facilitating smoother transactions. Many banks are now offering debit cards linked to these foreign currency accounts, enhancing the ability of IT companies and freelancers to conduct both domestic and international transactions seamlessly,” Shafi said.

He further added that the results of these supportive measures were evident as during the first four months of FY25, Pakistan’s ICT export remittances surged by 34.9%, totalling $1.206 billion compared to $894 million in the same period last year. “Moreover, the ICT industry achieved a trade surplus of $1.063 billion during this timeframe, reflecting a significant increase from $763 million in the previous year.

This robust performance underscores the government’s commitment to fostering sustainable growth within Pakistan’s ICT industry through incentives and ease of doing business,” Shafi noted. He emphasised that as the country continues to develop its digital economy, it stands out as an attractive destination for global investments in the IT sector.

“With its vast pool of English-speaking professionals and an increasing number of tech startups, Pakistan is poised to become a significant player in global outsourcing and software development.” “Although challenges such as internet quality and financing for new enterprises remain, the potential for growth in Pakistan’s IT sector is substantial, making it crucial for both domestic and foreign investors looking to capitalise on emerging markets,” he said.

Credit: INP-WealthPk