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Monday, November 28, 2022

The IT sector can help Pakistan's economy, but several factors need to go in its favour - Business Recorder

Last updated Wednesday, November 23, 2022 10:05 ET , Source: TopWireNews

Perspectives
As a veteran reporter, I have been covering the IT sector along with other areas for a while. The one notable thing I have observed is that people are bullish on the sector's growth prospects.
The banking sector appears to be on the same path as well, but this seems to come on the back of fintech's potential, which is powered mainly by the IT sector — blurring the lines between the two.
The reasons why IT-telecom sector lagging behind explained
The IT sector has seen significant growth in recent years. IT-related exports went up from $1.4 billion in fiscal year 2019-20 to a record $2.1 billion the next year. Growth rate slowed in FY 2021-22 as exports clocked in at $2.7 billion, according to the Pakistan Software Houses Association for IT. The government had set a target of $3 billion for FY22.
However, many in the industry feel that the government has not played a huge role in this growth, and that it has come on back of Pakistan's robust demographic of young individuals who are tech savvy.
There is, however, a dire need for capital expenditure in this sector. Hence, there’s also a need for the government to spend on infrastructure in order to pave way for the growth momentum to continue. Connectivity is provided by the telecom sector that covers clusters with little role of the government.
Instead, these companies should also be pushed by the government to reach remote areas in order to be inclusive of people living there. This may boost tech growth.
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