IT exports surge to $147 million in July-August

KARACHI: Pakistan’s information technology exports surged nearly one-fourth to $147 million in the first two months of the current fiscal year of 2016/17 on the growing demand of software consultancy services in the international market, the official data showed.  

Exports of software consultancy services more than doubled to $32.126 million in July-August 2016 over the corresponding period a year ago. Overall, exports of computer services, including hardware consultancy, maintenance and repairs and software, rose 25.67 percent to $84.110 million. 

Telecommunication services, including call centres, earned the country $62.620 million, up 21 percent. 

Industry experts said majority of IT exports are recorded as workers’ remittances. The export volume would go up, were the amount earned from technology services considered as IT exports. 

Tech ecosystem in the country is rapidly developing with software houses investing in resources to capitalise on the internet adaptability of the local consumers as well as expand their outreach in to the international market. 

The demand of telecommunication and banking sectors for modern tech solutions is growing. Telecom and banks sign agreements with international firms to procure tech solutions, but they usually prefer local system integrators to deploy banking and telecom solutions.   

The local environment gives immense opportunities to local IT firms to hone their skills and vie for share in the international markets.   

In the first two months of FY17, imports of telecommunication, computer and information services marginally increased 4.45 percent to $73.770 million. 

The PBS data showed that exports of transport services decreased 11.07 percent to $172.240 million in July-August 2016 over the same period of 2015. Exports of air passenger and freight services fell 10.54 percent to $168.220 million. Revenue from road transport services also dropped 12.82 percent to $680 million. 

Provision of construction services in the foreign countries fetched $19.670 million, more than four times the last year’s revenue.

Exports of insurance and pension services more than doubled to $9.245 million in July-August 2016 as against $4.490 million in the same period of 2015. 

The PBS data showed that August exports of telecommunication, computer and information services amounted to $79.990 million, up 19.48 percent over July and 45.70 percent over August 2015. 

Exports of transport services slightly fell 0.14 percent month-on-month (MoM) to $86.060 million, but sharply decreased 20.76 percent year-on-year (YoY). 

Construction service exports decreased 46.93 percent MoM to $6.820 million, but increased almost three times YoY.  

In July-August 2016, imports of transport services fell 12.19 percent to $501.632 million. Imports of construction services amounted to $1.3 million as compared to $70,000.