ISLAMABAD: Pakistan’s IT and IT-enabled Services (ITeS) export remittances declined by one percent during the first 11 months of the current fiscal year 2022-23 and stood at $2.369 billion compared to $2.383 billion during the same period of last fiscal year.

According to the official data, on a year-on-year (YoY) basis, the sector’s exports remittances increased by around 28 percent and remained at $236 million in May 2023 compared to $184 million in May 2022.

On a month-on-month basis, the sector’s export remittances increased by 24 percent compared to $191 million in April 2023.

The IT and the ITeS export remittances, including telecommunication, computer, and information services, reached an all-time high of $2.618 billion, a growth rate of 47.43 percent in the fiscal year 2022 compared to $2.108 billion in the fiscal year 2021.

The Ministry of Information Technology and Telecommunication had envisaged that the IT exports target of $5 billion would be achieved by June 2023.

However, it had also warned the government that on account of the non-implementation of agreed incentives, lack of consistency in policies, as well as, without resolving the tax and banks-related issues, the telecom sector exports remittances may suffer besides compromising its digital vision.

The National Assembly Standing Committee on Information Technology and Telecommunication was informed recently that Pakistan’s IT exports are over $5 billion but exports of just $2.5 billion are documented.

The stagnation in IT exports and a possible contraction on the cards have created profound concerns and apprehensions in the IT industry as the IT and the ITeS industry’s export remittances shrunk, sector experts stated.

They pointed out that the FBR, the SBP, the SECP, the TDAP, and the PSEB should work in tandem to align foreign exchange, taxation, companies’ regulations, and export and investment policies with international best practices.

This year, Pakistani IT exports are expected to be in the range of $2.5-$2.6 billion; which can easily be jacked up to the psychological mark of $5 billion in a quick succession of two years - provided policies of the government institutions turn business-friendly and focus on ease of doing business (EODB) parameters - on which Pakistan ranks abysmally low at 108th number, they added.

Copyright Business Recorder, 2023