The ratio of Pakistan IT exports is expected to rise to the highest number in 2022. According to a report, the country has shown record progress in the information technology sector. The IT exports of Pakistan in the fiscal year 2020 were $1.4 billion; after that, they surged to $2.1 billion in the fiscal year 2021. According to an IT analyst, Pakistan’s IT exports are expected to hit record growth in the fiscal year 2022 and reach $3 billion in the coming few months.
But, the targeted benchmark can only be achieved if the current government welcomes foreign investment in Pakistan. So, they can invest in technology startups in Pakistan and help the country establish more IT companies. These IT companies will not only put their part in increasing the potential of information technology in Pakistan, but it will also help thousands of individuals to get jobs.
However, due to the government of Pakistan’s effective policies, almost every sector has contributed a little part to the country’s economic growth. Furthermore, the government is taking steps to enhance in IT sector. The steps include:
- Increasing the number of graduates.
- Improving the standard of IT colleges and universities.
- Enhancing the financial structure of IT companies.
- Signing contracts with international IT firms for the betterment IT sector in Pakistan.
Besides that, the government also included in its plans to reduce taxes on IT products to let people invest more in information technology.
Reasons Behind Pakistan IT Exports Stunning Growth
There are specific reasons for Pakistan’s export growth. Every year, Pakistan is getting better compared to the previous year in IT and software technology. However, the expectation that Khuram Shehzad, CEO of Alpha Beta Core, has expressed about the forthcoming IT sector development has glowing chances to come true. In 2019, the Ambassador of the Republic of Korea, Suh Sangpyo, and Federal Minister of information technology and telecommunication Syed Amin ul Haque, inaugurated the Islamabad Technology Park. The project’s worth was Rs10 billion. So, the establishment of the Technology Park has added much to Pakistan’s IT export growth.
Furthermore, establishing technology special economic zones has enabled the investors to grow their capital by investing it in the Pakistan IT market. Pakistan IT experts are comparably much better than others and provide quality services at low cost so that everyone can afford and get their needful IT services.
In addition, the use of information technology increased with the enhancement of internet facilities. With 3G/4G and even 5G, the IT companies in Pakistan now have more minor problems. The rise in Pakistan’s IT exports in 2022 is no doubt due to the limitless contribution of IT institutions in Pakistan, as every year, there are 10,000 IT students get to graduate.
Pakistan’s Position in IT Exports
Pakistan is stabling its position in IT exports and taking it to matchless standings through some significant policies. Pakistan’s IT sector is promoting the use of Information technology in health, education, agriculture, and other socio-economic sectors. To promote the IT sector in Pakistan, the government of Pakistan is establishing IT zones and software technology parks. Besides that, in major cities of Pakistan and provincial capitals, the government is establishing a framework for setting up incubation centers. This reformation aims to promote the IT sector and freelancing and showcase the expertise of Pakistani IT experts to the international world.
Government plays an essential role in the growth of IT exports in Pakistan
The factors mentioned above have played an essential role in making Pakistan an independent region in information technology. There are specific opportunities for investors and individuals to share in the increase in Pakistan software exports. According to a report, the freelancers add a considerable amount to Pakistan’s IT export income data. Veqar ul Islam, a member of the Prime Minister Task Force on Information technology, stated on the second of march that due to the government’s decision to exempt taxes on the IT sector and freelance community, freelancers are now becoming an essential part of the gig economy. The government lifted the burden of taxes on freelancers, but it also facilitated easy access to banking services. To promote the IT sector in Pakistan, the government is inciting young talent to learn new technology and various skills and then work as freelancers to become part of Pakistan’s rapidly growing economy, the gig economy.
The lifting of taxes on IT services will encourage new investors to participate in the IT sector. It will also invite professional and skilled individuals to grow their expertise and expand their small services to entrepreneurship and the global market. Furthermore, the current government is promoting the IT sector more than any other sector in the shape of digital Pakistan. With that improvement in the information technology sector, Pakistan’s IT exports have risen daily. In addition, the services of IT companies in Pakistan and freelancers are undeniable in terms of contribution to the overall national economy.
However, there were some problems for the IT sector in the previous three years with the wave of Covid-19 as the hardware prices grew to uncoverable limits. These hindrances affected particularly the small IT companies and small entrepreneurs. But, they accepted the key challenges, continued their persistent toil, and performed their role in developing the IT sector and increasing the IT exports of Pakistan in 2022.
Besides these, the technology startups also grew by 78% in 2021 compared to 2020, and it is expected to grow by more than 50% in FY2022 compared to Fy2021.
The member of the Prime minister’s task force on information technology has directed the Information technology companies to adopt new advanced technologies and trends like Data science, artificial intelligence, gaming, etc. to outdo the international information technology companies is providing exceptional IT services, and IT exports in the coming few years.
The article discussed the current position of Pakistan’s IT exports comprehensively, its increasing ratio, the comparison with previous years, factors involved in growing IT exports, and future planning of the government of Pakistan regarding the IT sector. However, in the next few years, some IT analysts of Pakistan foresighted to raise Pakistan’s IT exports to $50 billion.
