PTBP Web Desk
Information Technology (IT) and IT-enabled Services (ITeS) sector has recorded an impressive 32% increase in remittance exports during the first five months of the fiscal year 2024-25. The sector’s total exports for this period reached $1.530 billion, up from $1.152 billion in the same timeframe of the previous fiscal year, reflecting its growing significance in the country’s economy.
According to official data, IT export remittances increased by nearly 25% on a year-on-year basis in November 2024, amounting to $324 million, compared to $259 million in November 2023. This upward trend underscores the steady rise in Pakistan’s digital exports.
However, on a month-on-month basis, the sector experienced a slight decline of 2%, with exports falling from $330 million in October 2024 to $324 million in November 2024. Despite this minor setback, the overall trajectory for IT export growth remains positive.
In the fiscal year 2023-24, IT export remittances reached a record high of $3.223 billion, representing a 24% increase from $2.596 billion in FY2022-23. This achievement highlights the sector’s resilience and its potential as a major contributor to the national economy.
Recognizing the sector’s potential, the government has set an ambitious goal of increasing IT export earnings from $3.2 billion in FY2024 to $4.2 billion in FY2025. This vision aligns with Pakistan’s broader economic agenda to enhance digitalization, create employment opportunities, and attract foreign investments.
To achieve this target, policymakers are focusing on securing a larger portion of IT export earnings, which currently remains partially untapped. Collaborative efforts between the government, financial institutions, and the private sector are underway to address this challenge.
Pakistan boasts a robust freelance community of 2.32 million individuals, who contribute 15% of the country’s IT exports. This segment plays a crucial role in driving the sector’s growth. However, challenges persist, particularly regarding financial inclusion.
- Only 38,000 freelancers currently hold bank accounts.
- To address this issue, the State Bank of Pakistan (SBP) has initiated efforts to increase banking penetration among freelancers.
- Approximately 500 new accounts are being opened weekly.
Encouraging more freelancers to open and retain bank accounts is essential for boosting their contributions to IT exports and ensuring greater transparency in financial transactions.
The remarkable growth in Pakistan’s IT exports can be attributed to several factors:
- Increased Demand for IT Services
Pakistan’s expertise in software development, call center operations, and digital marketing has positioned the country as a preferred outsourcing destination. - Government Support
Initiatives such as tax incentives for IT companies, improved infrastructure, and streamlined regulations have played a pivotal role in the sector’s expansion. - Digital Transformation
The global shift toward digitalization has created new opportunities for Pakistani IT firms to cater to international clients.
Despite the progress, challenges such as low financial inclusion among freelancers, limited access to global markets, and inadequate infrastructure remain. Addressing these issues is crucial for sustaining growth and achieving the ambitious export target of $4.2 billion by FY2025.
Opportunities abound in emerging technologies such as artificial intelligence (AI), blockchain, and cloud computing, where Pakistani firms can establish a strong foothold. Additionally, tapping into non-traditional markets and fostering innovation will be key to maintaining momentum.
