ISLAMABAD: The country’s information technology and IT-enabled services (ITeS) export remittances comprising computer services and call centre services registered around 33.7per cent growth during the first quarter of current fiscal year (July-September) as it remained $876 million compared to $655 million during the same period of last fiscal year.
According to official data, IT exports remittances increased by around 41.7per cent on year-on-year basis in September 2024 and stood at $292 million when compared to $206 million in September 2023. On month-on-month (MoM) basis, IT exports remittances declined by around 2.1per cent when compared to $298 million in August 2024.
IT exports remittances reached an all-time high of $3.223 billion in the fiscal year 2023-24 while registering 24 per cent growth when compared to $2.596 billion in 2022-23.
Experts estimated that IT sector will continue its growth trajectory and momentum with likely growth of 10-15 per cent for fiscal year 2025 to $3.5-3.7 billion.
Minister of State for IT and Telecommunication Shaza Fatima Khawaja said the remittances from ICT services export amounted to US$ 292 million in September 2024, a 41.7 per cent increase from US$ 206 million in September 2023.
She said steps are underwayfor increasing IT exports, adding that IT exports are increasing owing to initiatives for ease of doing business in the country.
Khawaja said on the directives of the prime minister of Pakistan and the full support of the Special Investment Facilitation Council (SIFC), the Ministry of IT and Telecommunication, the Pakistan Software Export Board and the IT industry are committed to increase IT exports.
The IT andITeS industry achieved a trade surplus of US$ 764 million, which constitutes 87.21 per cent of total ICT export remittances during the first three months of FY 2024-25. This surplus reflects a 36.67 per cent increase from US$ 559 million in the same period last year.
In contrast, the overall services sector recorded a trade deficit of US$ 699 million during this timeframe.The US$ 656 million in ICT export remittances during July to September 2024 is the highest among all services sectors, with “other business services” following at US$ 374 million.This robust performance underscores the growing significance of the ICT sector in Pakistan’s economic landscape
Telecom experts said thatYoY jump in IT exports is due to IT export companies growing client base globally, especially in GCC region, relaxation in the permissible retention limit by the State Bank of Pakistan, increasing it from 35 per cent to 50 per cent in the Exporters’ Specialized Foreign Currency Accounts, and stability in PKR encouraging IT exporters to bring higher portion of profits back to Pakistan.
A major development in July 2024 was SBP adding a new category of Equity Investment Abroad (EIA), specifically for export-oriented IT companies.
IT exporters can now acquire interest (shareholding) in entities abroad utilising up to 50 per cent proceeds from specialised foreign currency accounts.
This development will further boost confidence of IT exporters to remit proceeds back to Pakistan.
Copyright Business Recorder, 2024
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