ISLAMABAD: The country’s information technology and IT-enabled services (ITeS) export remittances comprising computer services and call centre services registered around four percent decline in the first month of current fiscal year i.e. July as it remained $286 million compared to $298 million in June 2024.
According to official data IT exports remittances increased by around 33.6 percent on year-on-year basis in July 2024 when compared to $214 million in July 2023.
IT exports remittances reached an all-time high of $3.223 billion in the fiscal year 2023-24 while registering 24 percent growth when compared to $2.596 billion in 2022-23.
Internet services remained slowdown for the last several weeks which according to sector experts may hit the country IT exports negatively.
Minister of State for IT and Telecommunication Shaza Fatima Khawaja said that the present government is committed for increase in IT exports. She further said that the prime minister is fully focused upon uplift of the IT sector.
Trade surplus of $ 252 million, highest in all Services (88 percent of total ICT export remittances) has been realised by the IT and ITeS industry during July 2024, an increase of 32.63 percent as compared to trade surplus of $190 million during July 2023 whereas, the services sector has overall recorded trade deficit of $159 million during the month of July fiscal year 2024.
The ICT sector exports of USD 286 million are the highest among all services (46 percent of total export of services) with “Other Business Services” trailing at USD 128 million, she added.
The Ministry of Information Technology and Telecommunications stated that IT exports in July 2024 are higher than last 12-month average of $269 million. IT exports are up because; policy initiative of government to increase retention limit from 35 percent to 50 percent in the Exporters’ Specialized Foreign Currency Accounts, and stability of the rupee prompting IT exporters to remit a bigger chunk of earnings to Pakistan. IT contributes 46 percent to the overall services exports in July 24, said the ministry, adding that the IT sector exports is likely to be above $3.5 billion in fiscal year 2025.
She said that on the directives of the prime minister of Pakistan and the full support of the Special Investment Facilitation Council (SIFC), Ministry of IT and Telecommunication, and Pakistan Software Export Board (PSEB) are taking steps to increase country’s IT exports.
The ministry 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 around $15 billion.
The Economic Survey says that the IT industry in Pakistan currently generates an annual export of around $2.6 billion. However, to achieve the ambitious target of yearly exports of $15 billion in the next five years, adding at least 200,000 proficient and specialised IT professionals is necessary. Pakistan’s ICT industry caters to the world’s largest entities among its regular clients.
Copyright Business Recorder, 2024
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