In a testament to Pakistan’s growing technological prowess, the country’s Information Technology (IT) exports recorded a stellar 9% month-on-month (MoM) growth in November 2023, reaching an impressive $259 million. This surge, 11% higher than the same period last year, is a promising sign for the nation’s IT sector.
The driving force behind this growth, as highlighted by a report from Topline Pakistan Research, includes the State Bank of Pakistan’s (SBP) policy adjustments, notably the relaxation of the permissible retention limit from 35% to 50% in the Exporters’ Specialized Foreign Currency Accounts. Additionally, the stability of the local currency encouraged IT companies to repatriate foreign income and deposit it in local accounts.
Computer services led the growth, showing a remarkable 14% MoM increase, while information services followed with 3% MoM growth. Conversely, telecom services experienced an 11% MoM decline. The overall segment-wise performance underscores the dynamic nature of Pakistan’s IT export landscape.
In conjunction with this positive trend, on December 21, Caretaker Minister for Information Technology and Telecommunications, Dr. Umar Saif, unveiled Pakistan’s inaugural IT Export Strategy. The strategy, developed in collaboration with international partners, aims to catapult the country’s IT exports to $10 billion within the next three years.
Dr. Saif outlined key components of the strategy, emphasizing workforce expansion, the introduction of a Dollar retention facility for IT companies, and the establishment of The Pakistan Startup Fund. The strategy aligns with the government’s vision, focusing on human resource development, freelancers’ facilitation, and the creation of a resilient IT ecosystem.
These developments not only showcase the resilience of Pakistan’s IT sector but also underscore the country’s ambitions to become a global IT hub. The strategic initiatives set the stage for sustained growth, increased competitiveness, and a robust presence in the global technology landscape.