ISLAMABAD: The IT and IT-enabled Services (ITeS) export remittances comprising computer services and call centre services increased by around 4.4 percent during the first four months (July-October) of the current fiscal year 2023-24 and remained $893 million compared to $855 million during the same period of last fiscal year.
The official data showed that ITeS exports remittances increased by around 15 percent on a month-on-month (MoM) basis in October 2023 and remained $238 million compared to $206 million in September 2023.
On a year-on-year (YoY) basis, the sector export remittances increased by around 7.6 percent compared to $221 million in October 2022.
The ICT export remittances, including telecommunication, computer, and information services, stood at $2.597 billion, a negative growth rate of around 1 per cent in the fiscal year 2022-23 compared to $2.619 billion in the fiscal year 2021-22.
The Ministry of Information Technology and Telecommunications has identified several constraints including inconsistency in policies, taxation issues and banking hurdles which are hampering the country’s information technology sector’s export potential of $15 billion.
Official documents revealed that over the past five years, phenomenal upward growth of 178 percent in IT and ITeS exports has been realised at a compound annual growth rate (CAGR) of 30 percent, the highest growth rate in comparison to all other local industries in services and even higher than the textile sector which stands at 148 percent.
However, a number of constraints and hurdles are hindering the growth of IT and ITeS exports. Inconsistency of policies has eroded the confidence of local and international investors, customers and partners not to mention the trade bodies and government entities. Frequent changes in taxation policy on IT and ITeS export proceeds are one such example.
Leading IT exporter Noman A Said viewed that export of IT companies should be enhanced in upcoming months as the government provided a 50per cent retention facility for the foreign exchange accounts.
With the given facility, IT companies will be able to target export orders of big ticket solely or partnership because their capacity to explore new and mega project should be improved, he said and added. The IT companies should fulfil their promise to bring in their foreign exchange from offshore offices including investments.
He urged all stakeholders also IT companies and freelancers for maintaining foreign exchange in their dedicated accounts. Also, this policy should be continued for a long-term basis to achieve the desired results.
Copyright Business Recorder, 2023
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