Pakistan reaches historic milestone in IT exports
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ISLAMABAD - IT exports through banking channels crossed the mark of $1 billion for the first time in the history of Pakistan, reaching a new milestone.
According to the data updated by State Bank of Pakistan, exports of IT and IT-related services increased to $1.067 billion in the financial year 2017-18, as compared to $939 million recorded in the financial year 2016-17, showing a double-digit growth of 13%.
This is the second consecutive time the IT industry attained an all-time high record. The country also achieved the highest value of IT remittances in the previous financial year 2016-17.
The value of IT exports is considered as three times more than the remittances reported by the central bank, which means the overall number crossed the mark of $3 billion in the outgoing financial year. The discrepancy of the exports receipt of IT sector is due to the fact the export income is reflected in various other sectors such as financial, automobile, and health sectors.
Besides, a handsome amount of exports earning driven by freelancers is landed under overseas remittances, which causes a misreporting of export numbers. There are various local companies of various sizes functioning through Dubai and other countries while their services and products are delivered in Pakistan. The earnings are sent under overseas remittances by companies and workers, hence the real number of exports are not determined properly.
Export of IT and IT-enabled services grew mainly due to the increasing demand 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 are visiting Pakistan due to the better security image, said Barkan Saeed Chairman Pakistan Association of Software Houses (P@SHA).
Besides, the depreciation of the Rupee against the Dollar is one of the two major 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 38 percent share, with exports to Middle Eastern countries following.
Pakistan’s IT industry is mainly “outsourcing industry” where services are provided to companies abroad. A majority of the revenue comes from software exports and services.
