KARACHI: While jumping 29 percent to $251 million in December, IT exports surged 36 percent to $1.3 billion in the first half of this fiscal year, mostly riding a massive stream of investment pouring into Pakistan’s technology sector, data showed on Saturday.
Technology exports amounted to $667 million in the second quarter. Pakistan’s total IT exports stood at $1.44 billion in FY2020, which increased to $2.1 billion in FY2021.
According to Khurram Schehzad, CEO of Alpha Beta Core, this growth will gather more momentum down the line.
“Increased investment in the startup ecosystem is helping Pakistan develop technology infrastructure, which will in turn increase IT exports growth,” Schehzad said.
However, the recent increase in foreign investments in Pakistan, especially in tech based startups doesn’t reflect in the IT exports.
But Schehzad says it has been helping develop technology infrastructure and increase job opportunities in tech-based companies, which will eventually help increase IT exports further.
“I see IT exports recording a historic high of $2.8 billion to $3 billion in the fiscal year 2022,” an IT sector analyst said.
“But it depends on if the government is willing to incentivise the sector.”
He said the government also needed to establish tech zones to help the sector grow more.
He said around 15,000 IT companies were being established and hiring fresh employees, adding, expansion of the technology sector would subsequently fuel IT exports growth.
Wajid Rizvi, Head of Strategy and Economy at JS Global, expects IT exports to grow to $2.6 billion by the end of FY2022.
“The market-based exchange rate and devaluation of rupee has also enhanced the potential of technology sector exports as the companies/individuals associated with the sector receive their payments mostly in dollars,” Rizvi said.
He added that Pakistan was a net exporter of IT services and the sector had a great potential to grow, evident from a rising trend of software and other IT exports.