ISLAMABAD – IT exports through banking channels crossed the mark of $1billion for the first time in the history of Pakistan, reaching a newmilestone.
According to the data updated by State Bank of Pakistan, exports of IT andIT-related services increased to $1.067 billion in the financial year2017-18, as compared to $939 million recorded in the financial year2016-17, showing a double-digit growth of 13%.
This is the second consecutive time the IT industry attained an all-timehigh record. The country also achieved the highest value of IT remittancesin the previous financial year 2016-17.
The value of IT exports is considered as three times more than theremittances reported by the central bank, which means the overall numbercrossed the mark of $3 billion in the outgoing financial year. Thediscrepancy of the exports receipt of IT sector is due to the fact theexport income is reflected in various other sectors such as financial,automobile, and health sectors.
Besides, a handsome amount of exports earning driven by freelancers islanded under overseas remittances, which causes a misreporting of exportnumbers. There are various local companies of various sizes functioningthrough Dubai and other countries while their services and products aredelivered in Pakistan. The earnings are sent under overseas remittances bycompanies and workers, hence the real number of exports are not determinedproperly.
Export of IT and IT-enabled services grew mainly due to the increasingdemand of Pakistan’s products and services in the exporting countries,which have been improving gradually in the last couple of months.
The business of big companies has improved as many foreign clients arevisiting Pakistan due to the better security image, said Barkan SaeedChairman Pakistan Association of Software Houses (P@SHA).
Besides, the depreciation of the Rupee against the Dollar is one of the twomajor reasons which reflected the growth in export numbers.
Pakistan’s exports to IT and IT-enabled services are mainly concentrated(by 60 percent) to the US market, followed by European countries with 38percent share, with exports to Middle Eastern countries following.
Pakistan’s IT industry is mainly “outsourcing industry” where services areprovided to companies abroad. A majority of the revenue comes from softwareexports and services.